Blue Hamster Manufacturing Inc. Balance Sheet Years ending December 31 Year 2 Year 1 ASSETS Current assets: Cash and equivalents Accounts receivables $138,375 $110,700 $50,625 $40,500 $148,500 $118,800 Inventory Total current assets $337,500 $270,000 Net fixed assets: Net plant and equipment Total assets $412,500 $330,000 $750,000 $600,000 LIABILITIES AND EQUITY Current liabilities: Accounts payable Accruals Notes payable $0 $0 $7,031 $0 $39,844 $37,500 $46,875 Total current liabilities Long-term bonds $37,500 $112,500 $140,625 Total debt $187,500 $150,000 Common equity: Common stock $365,625 $292,500 Retained earnings $196,875 $157,500 Total common equity $562,500 $450.0nn On December 31 of Year 2, Blue Hamster Manufacturing Inc, had $138,375 of actual money that it could have spent immediately, This statement is because: Blue Hamster's Year 2 cash and equivalents balance is $348,300. 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 The funds recorded in Blue Hamster's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately On December 31 of Year 2, Blue Hamster Manufacturing Inc. had $138,375 of actual money that it could have spent immediately. This statement is because Blue He true 2 cash and equivalents balance is $348,300 The fun incorrect In Blue Hamster's cash and equivalents account represents funds that are elther cash or can be converted into cash almost immediately The funds recorded in Blue Hamster's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately