Ch 02: Assignment - Financial Statements, Cash Flow, and Taxes Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works 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 Statement \#1: Cold Goose's net collection of inventory items increased by more than the firm sold between Years 1 and 2. This statement is because: Total inventories of raw materials, work-in-process, and final goods increased from $2,970 million to $3,712 million between Year 1 and Year 2. Total inventories of raw materials, work-in-process, and final goods decreased by $742 million between Year 1 and Year 2. The accruals balance decreased by $176 million between Years 1 and 2. Statement \#2: In Year 2, Cold Goose Metal Works Inc. Was profitable. This statement is because: Cold Goose's retained earnings account increased between the end of Years 1 and 2. Cold Goose's total assets increased between Years 1 and 2. The cash and equivalents account increased between Years 1 and 2. Statement \#3: The book value per share of Cold Goose's stock in Year 2 was $281.26. 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 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 Cold Goose Metal Works Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's assets should be listed in the order in which they are to be converted into cash. 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