Blue Hamster Manufacturing Inc.

Balance Sheet for Year Ending December $31$

$($Millions of Dollars$)$

Year $2$ Year $1$ Year $2$ Year $1$

Assets Liabilities and equity

Current assets: Current liabilities:

Cash and equivalents $$6,457$ Accounts payable $$0$ $$0$

Accounts receivable $2,9532,363$ Accruals $4100$

Inventories $8,6626,930$ Notes payable $2,3242,187$

Total current assets $$19,687$ $$15,750$ Total current liabilities $$2,187$

Net fixed assets: Long$-$term debt $8,2036,563$

Net plant and equipment $$19,250$ Total debt $$10,937$ $$8,750$

Common equity:

Common stock $21,32817,063$

Retained earnings $9,187$

Total common equity $$32,813$ $$26,250$

Total assets $$43,750$ $$35,000$ Total liabilities and equity $$43,750$ $$35,000$

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