I need help with the statement questions please.

2. Balance sheet Aa Aa 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. Green Caterpillar Garden Supplies 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. Green Caterpillar Garden Supplies Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets: Cash and equivalents Accounts receivable Inventories $0 $4,612 1,688 4,950 Liabilities and equity Current liabilities: Accounts payable Accruals Notes payable $0 234 $3,690 1,350 3,960 $9,000 0 1,328 1,250 Total current assets $11,250 Total current liabilities $1,562 $1,250 4,688 3,750 Net fixed assets: Net plant and equipment $13,750 $11,000 $6,250 $5,000 Long-term debt Total debt Common equity: Common stock Retained earnings Total common equity Total liabilities and equity 12,188 6,562 9,750 5,250 $15,000 $20,000 $18,750 Total assets $25,000 $20,000 $25,000 Statement #1: Green Caterpillar's pool of relatively liquid assets, which are available 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 $9,000 million to $11,250 million between Year 1 and Year 2 Green Caterpillar's total current asset balance decreased from $11,250 million to $9,000 million between Year 1 and Year 2 Green Caterpillar's total current liabilities balance increased from $1,350 million to $1,688 million between Year 1 and Year 2 Statement #2: In Year 2, Green Caterpillar Garden Supplies Inc. was profitable. This statement is because: The cash and equivalents account increased between Years 1 and 2 Green Caterpillar's retained earnings account increased between the end of Years 1 and 2 Green Caterpillar's total assets increased between Years 1 and 2 Statement #3: The book value of one of Green Caterpillar's fixed assets is calculated as the original cost of the asset minus its annual depreciation expense. This statement is because: 1 An asset's net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs An asset's net book value is calculated by subtracting its accumulated depreciation expense from its total historic and installation costs An asset's net book value is calculated by adding its annual depreciation expense to its total historic and installation costs 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 buys a new plant and equipment at a cost of $1 million with liquid capital