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Blue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. 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 $3,690 Accounts payable Accounts receivable 1,688 1,350 Accruals $0 234 $0 0 Inventories 4,950 3,960 Notes payable 1,328 1,250 Total current assets $11,250 $9,000 Total current liabilities Net fixed assets: Long-term debt 4,688 $1,250 3,750 Net plant and equipment $11,000 Total debt $6,250 $5,000 Common equity: Total assets $25,000 Common stock Retained earnings 12,188 9,750 5,250 $20,000 Total common equity Total liabilities and equity $18,750 $25,000 $15,000 $20,000 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 sheet. Statement #1: Blue Hamster's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is because: Total inventories of raw materials, work-in-process, and final goods increased from $3,960 million to $4,950 million between Year 1 and Year 2 The accruals balance decreased by $234 million between Years 1 and 2 Total inventories of raw materials, work-in-process, and final goods decreased by $990 million between Year 1 and Year 2 Statement #2: Over the past two years, Blue Hamster Manufacturing Inc. has relied more on the use of short-term debt than on long- term debt financing. This statement is because: Blue Hamster's total current liabilities increased by $312 million, while its use of long-term debt increased by $938 million Blue Hamster's total notes payable increased by $78 million, while its common stock account increased by $2,438 million Blue Hamster's total current liabilities decreased by $312 million, while its long-term debt account decreased by $938 million Statement #3: The book value per share of Blue Hamster's stock in Year 2 was $375.00. 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 debt 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 Based on your understanding of the different items reported in the balance sheet and the information they provide, which statement regarding Blue Hamster Manufacturing Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's assets should be listed in alphabetical order. The company's assets should be listed from those carrying the largest balance to those with the smallest balance. The company's assets should be listed in the order in which they are to be converted into cash.