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Canogola Domain Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation.

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Canogola Domain 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. Canogola Domain Inc. Balance Sheet For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equit)y Current liabilities: Current assets: Cash and equivalents Accounts receivable Inventories 1,350 3,960 9,000 2,952 Accounts payable 1,080 Accruals 3,168 Notes payable 7,200 Total current liabilities 188 1,000 1,000 3,000 4,000 1,062 Total current assets 3,750 5,000 Net fixed assets Long-term debt Net plant and equipment 8,800 Total deb Common equity 7,800 4,200 12,000 16,000 Common stock 9,750 Retained earnings Total common equity Total liabilities and equity 15,000 20,000 Total assets 20,000 16,000 The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations about the company. According to the information given in the preceding balance sheet and considering that the company has 50 million outstanding shares, which of the following interpretations are true for Canogola Domain Inc.? Check all that apply. Current assets are considered liquid assets and can be converted into cash in less than one year Canoqola Domain Inc.'s net operating working capital in the first year was $7,200 million. Canogola Domain Inc. uses short-term financing, long-term debt, and common equity to finance its assets. The book value per share of Canogola Domain Inc.'s stock in the second year was $300.00 Current assets are considered liquid assets and cannot be converted into cash in less than one year The market value of a company's stock is always more than its book value. Based on your understanding of the different items on the balance sheet and the information they provide, if everything else remains the same, the cash and equivalents item on the current balance sheet is likely to new plant and equipment at a cost of $1 million with liquid capital. if the firm buys a increase remain the same

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