Statement #1: Cold Goose'snet collection of inventory items increased by more than thefirm sold between Years 1 and 2. This statement is because: OTotal inventories of raw materials, work-in-process, and finalgoods increased from $1,980 million to $2,475 millionbetween Year 1 and Year 2 Total inventories of raw materials,work-in-process, and final goods decreased by $495 millionbetween Year 1 and Year 2 The accruals balance decreased by$117 million between Years 1 and