Cute Camel Woodcraft Company 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 $6,457 Accounts payable $0 SO Accounts receivable 2,953 2,363 Accruals 410 0 Inventories 8,662 6,930 Notes payable 2,324 2,187 Total current assets $19,687 $15,750 Total current liabilities $2187 Net fixed assets: Long-term debt 8,203 6,563 Net plant and equipment $19,250 Total debt $10,937 $8,750 Common equity: Common stock 21,328 17,063 Retained earnings 9,187 Total common equity $32,813 $26,250 Total assets $43,750 $35,000 Total liabilities and equity $43,750 $35,000 Statement #1:Cute Camel's net collection of inventory items increased by more than the firm sold between Years 1 and 2. This statement is because: O Total incorrect raw materials, work-in-process, and final goods increased from $6,930 million to $8,662 million between Year 1 and Year 2 incorrect Total inventones of raw materials, work-in-process, and final goods decreased by $1,732 million between Year 1 and Year 2 The accruals balance decreased by 5410 million between Years 1 and 2 Statement #2: In Year 2, Cute Camel Woodcraft Company was profitable. This statement is because: O Cute Camel's retained earnings account increased between the end of Years 1 and 2 Cute Camel's total assets increased between Years 1 and 2 The cash and equivalents account increased between Years 1 and 2