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Given the information in the preceding balance sheet-and assuming that Green Caterpillar Garden Supplies Inc. has 50 million st stock outstanding - read each of

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Given the information in the preceding balance sheet-and assuming that Green Caterpillar Garden Supplies Inc. has 50 million st stock outstanding - read each of the following statements, then identify the selection that best interprets the information conveye sheet. Statement #1: Green Caterpillar's pool of relatively liquid assets, which are avallable to support the company's current and future sales, decreased from Year 1 to Year 2. This statement is , because: Green Caterpillar's total current asset balance actually increased from $15,750 million to $19,687 millon between Year 1 and Year 2 Green Caterpillar's total current liabilities balance increased from $2,363 million to $2,953 million between Year 1 and Year 2 Green Caterpillar's total current liabilikes balance decreased by $3,937 million between Year 1 and Year 2 Statement #2: On December 31 of Year 2, Green Caterpillar Garden Supplies inc. had $8,072 million of actual money that it could have spent immediately. This statement is , because: The funds recorded in Green Caterpillar's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately Green Caterpllar's Year 2 cash and equivalents balance is $20,317 Statement #3: If Green Caterpillar ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: Common shareholders are treated as residual investors Debtholders and preferred shareholders are considered residual investors Debtholders are treated as residual investors Based on your understanding of the different Rems reparted on the balance sheet and the information they provide, if everything eise remains the same, then the cash and equivalents item on the current balance sheet is likely to If the firm issues 53 million of new. common stock

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