Given the information in the preceding balance sheet-and assuming that Green Caterpillar Garden Supplies 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 sheet. Statement =1 : Green Caterpillar's accumulated ovred financal obligations decreased from Vear 1 to Year 2. This statement is - because: Accruals actually increased from $0 in Vear 1 to $117 million at the end of Vear 2. Notes payable actually increased from $664 mittion to $525 mittion between Years 1 and 2. Long-term debt decreased from $664 million at the end of Year 1 to $625 milion by the end of Vear 2. Statement =2, On December 31 of Vear 2, Green Caterpillar Garden Supplies Inc: had 52,306 million of actual money that it could have spent immediately. This ratement is , because: Green Caterplilar's Vear 2 cash and equivalents balance is $5,905 mitbon. The funds recorded in Green Caterpillar's accounts recelvable tccount repretents funds that are either cash or can be converted into cash almort immediasely. The funds rotorded in Green. Caterpllar's cash ard equivalents account represents funds that are either cash or can be converted into cash almest immedately. Statement *3: The book value per share of Green Caterpillar's stock in Year 2 was $187.50. This statement is because: The pershare book value is calculated by dividing the company's total debt by the number of outstanding shares of common stock. The perthare book value is calculated by dividing the company's total common equity by the number of outstanding shares of cominon stock The pershare 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 dfferent items reported on the balance sheet and the information they provide, which statement regarding. Green Caterpillar Garden Supplies Inc's balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's debcs should be listed from those carrying the largest balance to those with the smallest balance. The company's debes should be tisted in order of their ficuldity. The company's debts are livted in the order in which they are to be repaid. 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 staternents to make several interpretations regarding the company's financial condition and performance. Green Caterpillar Garden Supplies Inc, is a hypothecical 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. Green Caterpillar Garden Supplies Inc: Balance Sheet for Year Ending December 31
