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Cute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of

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Cute Camel Woodcraft Company 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. Cute Camel Woodcraft Company Balance St Given the information in the preceding balance sheet-wand assuming that Cute Camel Woodcraft Company tras So 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: Cute. Camel's pool of relatively liquid assets, which are avalable to support the company's current and future sales, decreased from Year 1 to Year 2. This statement is because: Cute Camel's total current liabilities balance increased from $2,363 million to $2,953 million between Year 1 and Year 2 . Cute Camel's total current asset balance actually increased from $15,750 million to $19,687 militon between Year 1 and Year 2 . Cute Camel's total current liabilities balance decreased by $3,937 million between Year 1 and Year 2 Statement \#2: In Year 2, Cute Camel Woodcraft Company was profitable. This statement is , because: The cash and equivalents account increased between Years 1 and 2 Cute Camel's total assets increased between Years 1 and 2 Cute Camel's retained earnings account increased between the end of Years 1 and 2 Statement =3: If Cute Camel ever poes bankrupt, its commion stockholders will be paid off first, then its debtholders and preferred stockholders, This statement is , bocausa: Debtholders arid preferred shareholders are considered residual ifvestors Debtholders are treated as residual investars Common shareholders are treated as residual investors Based on your understanding of the different items teported on the balance sheet and die information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to common stock, if the firm issues 53 million of new

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