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Statement # 2 : Over the past two years, Green Caterpillar Garden Supplies Inc. has relied more on the use of short - term debt

Statement #2: Over the past two years, Green Caterpillar Garden Supplies Inc. has relied more on the use of short-term debt than on long-term debt financing.
This statement is q,, because:
Green Caterpillar's total current liabilities increased by $625 million, while its use of long-term debt increased by $1,875 million.
Green Caterpillar's total notes payable increased by $156 million, while its common stock account increased by $4,875 million.
Green Caterpillar's total current liabilities decreased by $625 million, while its long-term debt account decreased by $1,875 million.
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