Is 2. Balance sheet 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 tory Green Caterpillar Garden Supplies Inc.Balance Sheet for Year Ending December 31 (Millions of dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $7,380 Accounts payable $0 $0 Accounts receivable 3,375 2,700 Accruals 469 0 Inventories 9,900 7,920 Notes payable 2,656 2,500 Total current assets $22,500 $18,000 Total current abilities $2,500 Net fixed assets: Long-term debt 9,375 7.500 Net plant and equipment $22,000 Total debt $12,500 $10,000 Common equity Common stock 24,375 19,500 Retained earings 10,500 Total common equity $37.500 $30,000 Total assets $50,000 $40,000 Total liabilities and equity $50,000 $40,000 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 net collection of Inventory items increased by more than the firm sold between Years 1 and 2 This statement is because: o Total inventories of raw materials, work-in-process, and final goods increased from $7,920 million to $9,900 million between Year 1 and Year 2 Total Inventories of raw materials, work-in-process, and final goods decreased by $1,980 million between Year 1 and Year 2 The accruals balance decreased by $469 million between Years 1 and 2 Statement #2: On December 31 of Year 2, Green Caterpillar Garden Supplies Inc. had $9,225 million of actual money that it could have spent immediately Statement #2: On December 31 of Year 2, Green Caterpillar Garden Supplies Inc. had $9,225 million of actual money that it could have spent immediately because: This statement is The funds recorded in Green Caterpillar's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately O Green Caterpillar's Year 2 cash and equivalents balance is $23,220 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 Statement #3: The book value per share of Green Caterpillar's stock in Year 2 was $750.00. This statement is , because The per-share book value is calculated by dividing the company's total common equity by the number of outstanding shares of common stock The per-share book value is calculated by dividing the company's total assets by the number of outstanding shares of common stock The per share book value is calculated by dividing the company's total debt by the number of outstanding shares of common stock 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 issues $3 million of new common stock