he Case of Georia Industries Inc.

Georia Industries Inc. 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.

Georia Industries Inc. Balance Sheet for the Year Ending on December $31($Millions of dollars$)$

Year $2$Year $1$Year $2$Year $1$AssetsLiabilities and equityCurrent assets:Current liabilities:Cash and equivalents$2,029$Accounts payable$00$Accounts receivable$928743$Accruals$1290$Inventories$2,7222,178$Notes payable$730687$Total current assets$6,1874,950$Total current liabilities$687$Net fixed assets:Long$-$term debt$2,5782,063$Net plant and equipment$6,050$Total debt$3,4372,750$Common equity:Common stock $6,7035,363$Retained earnings$2,887$Total common equity$10,3138,250$Total assets$13,75011,000$Total liabilities and equity$13,75011,000$

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 about the company.

According to the information given in the preceding balance sheet and considering that the company has $50$ million outstanding shares, which of the following interpretations are true for Georia Industries Inc.?$$Check all that apply.

Georia Industries Inc. has $$2,537$ million of actual money that it can spend immediately.

Georia Industries Inc.$$s net operating working capital in the first year was $$4,950$ million.

The asset side and liabilities side of a balance sheet list accounts in the order of their liquidity.

The book value per share of Georia Industries Inc.$$s stock in the second year was $$206\mathrm{.}26.$

Current assets are considered liquid assets and cannot be converted into cash in less than one year.

The market value of a company$$s stock is always more than its book value.

Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to$$if the firm increases the dividends paid on its common stock.