Fill blanks in balance sheet and answers following questions.
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 regarding the company's financial condition and performance. 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 Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Currentassets: Liabilities and equity Current iabilities: Cashand equivalents Accounts receivable $2,767 Accounts payable $0 1,266 3,712 $8,437 1,013 Accruals 2,970 Notes payable 176 96 937 $937 2,813 $3,750 Total current assets $6,750 Total curent liabilities Net fixed assets Long-tem debt 3,515 $4,687 Net plant and equipment $ $8,250 Total debt Common equity: Common stock Retained earnings Total common equity 9,141 7,313 3,937 $11,250 $15,000 $14,063 Total assets $18,750 $15,000 Total iabilities and equity $18,750 Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company 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 sheet. statement # 1: cute ca el's accumulated owed financial obligations decreased from Year 1 to Year 2. This statement is because: O Acruals actually increased from $0 in Year 1 to $176 million at the end of Year 2 O Notes payable actually increased from $996 million to $937 million between Years 1 and 2 O Long-tem debt decreased from $996 million at the end of Year 1 to $937 millian by the end of Year2 statement #2: On December 31 of Year 2, cute ca spent immediately This statement is el Woodcraft Company had $3,459 million of actual money that it could have because: The funds recorded in cute camel's cash and equivalents account represents funds that are either cash or can be oonverted into cash almost immediately O Cute Camel's Year 2 cash and equivalents balance is $8,707 The funds recorded in cute camel's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately Statement #3: If Cute Ca el ever goes bankrupt, its oommon shareholders wil be paid off first, then its debtholders and preferred stockholders. This statement is because: O Debtholders and preferred shareholders are considered residual investors O Debtholders are treated as residual investors O Common shareholders are treated as residual investons Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Cute Camel Waodcraft Company's balance sheet is consistent with U.S. Generally Accepted Accounting Prindiples (GAAP)? O The company's debts are listed in the orderin which they are to be repaid. O The company's debts should be listed in order of their liquidity O The company's debts should be listed from those carrying the largest balance to those with the smallest balance
