Ch 03- Assignment - Financial Statements, Cash Flow, and Taxes Btue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Miflions of Dollars) Given the information in the preceding balance sheet-and assuming that Elue Hamster Manufacturing Inc. has 50 million shares of outstanding-read each of the following statements, then identify the selection that best interprets the information conveved by the Statement # 1: Blue Hamster's net collection of inventory iterns 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 an 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 longterm debt finanding. Statement =2 : Over the past two years, Blue Hamster Manufacturing fnc. has relied more on the use of short-term debt than on longterm 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 miffinn Blue Hamster's total current liabinties decreased by $312 million, while its long-term debt account decreased by $938 million Statement a3; The book value per share of Blue Harnster's stock in Year 2 was $375.00. This statement is , because: The per-share book value is calculated by dividing the companv's total common equity by the number of outstanding shares of common stock Ch 03-Assignment - Financial Statements, Cash Flow, and Taxes Statement 23 : The book value per share of Blue Hamster's stock in Year 2 was $375.00. Catalog and Study Tools Rental Options This staternent is becouse: College success Tips : Career Success Tips Help che Feedback The per-share book value is calculated by dividing the coenpany's total comenon equity by the number of outstansing shares of conmen stock The per-share book value is calculated by dividing the company's total debt try the number of outstanding shares of cumron stock The per-share book value is calculated by dividing the campany/s total assets by the number of outstanding shares of cammon stock Based on your understanding of the different items reported in the balance sheet and the information they provide, witich atatement regardina Bloe Hamster Manufacturing Inc.'s balance sheet is consistent with U.5. Cenerally Accepted Accounting Prindples (GAMP)? The companv's ansets should be listed in alphabetical order. The company's assets should be listed from those carring the largest balance to those with the amalest balance. The company's assets should be listed in the order in which ther are to be converted into cash
