Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets: Cash and equivalents Accounts receivable $8,072 2,953 30 Inventories 0 $19,687 Total current assets Net fixed assets: Net plant and equipment Current laws $5,457 Accounts payable 30 2.363 Accrual 410 6,930 Notes payable 2,324 $15,750 Total current les $2.734 Long-term debit $19,250 Total debt $10,937 Common equity Common stock 21,328 Retained earnings 11.485 Total common equity $32,813 $35,000 Total Babies and equity 43,750 2,187 $2,187 6,563 $24.063 $8,750 17.063 9,182 $26,250 $35,000 Total assets $43,750 Given the information in the preceding balance sheet-and assuming that Blue Hamster Manufacturing Inc. has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet. Statement #1: Be Hamster's accumulated owed financial obligations decreased from Year 1 to Year 2. This statement is because Notes payable actually increased from $2,324 million to $2,187 million between Years 1 and 2. e Accruals actually increased from $0 in Year 1 to $410 million at the end of Year 2. Long-term debt decreased from $2,324 million at the end of Year 1 to $2,187 million by the end of Year 2. Statement #2: On December 31 of Year 2, Blue Hamster Manufacturing Inc. had $8,072 million of actual money that could have spent Immediately This statement is because: The funds recorded in Blue Hamster's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately. Blue Hamster's Year 2 cash and equivalents balance is $20,317 million The funds recorded in Blue Hamster's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately. Statement #3: The book value per share of Blue Hamster's stock in Year 2 was 1656.26. This statement is because: The per-share book value is calculated by dividing the company's total common equity by the number of outstanding shares of common stock The per-share book value is calculated by dividing the company's total assets by the number of outstanding shares of common stock The per share book value is calculated by dividing the company's total debt by the number of outstanding shares of common stock Based on your understanding of the different items reported on the balance sheet and the information they provide, f everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to the im buys a new plant and equipment at a cost of $1 million with liquid capital