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The balance sheet provides a shapstiod of thie finandal condition of a corncarif. finvesters and analrits use the information olven en the talance sheet and

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The balance sheet provides a shapstiod of thie finandal condition of a corncarif. finvesters and analrits use the information olven en the talance sheet and otfer finandal statements to make several interpretations regariding the companys finandal condition and perfirmance. of operation. Tor the second reag, some parts are stia incomplete. Use the information given to cornelete the balance sheef. Oiven the information in the preceding balance sheet-and asiuming that Green Caterpilar Garden fuoplies inc. has 50 mallan shares of common. stock outstanding - read each of the following statements, then identify the selection that best interprets the information corvered by the balance theet. Statement A 1 Green Caterpliar's pool of relatively lipuid assets, which are avalable to suppert the companr's current and future sales, decreased frem vear I to Year 2 . This statement is because! Green calerpillar's total current liablates balance increased from 12,363 million to 92,953 million befween vear I and Year 2 Statement e2: On December 31 of vear 2, Creen Catersillar Garden Supples inc, had ss,07 millon of actual money that at coeld have soent immedlately. Itis statement is because: The funds recarded in creen Caterilar s cach and equidents account resements fundo that are eaher cash or can be copveited inte cash almont inmediately Creen Catempilar i Year 2 cash and equivatents balance is 470,317 The funde recorded in creen caterpillars accounts receivatie account represents funds that are eather cash or can be tariverted into cadi. atmost limedialely preferred steckholders. This statement is becausel Dobtholders are treated as revidual investors Common thareholders are treated an residual inveators Debtholders and preferred shareholders are considered residual investors preferred stodjolders. This statement is because: Detheders are treated as realdual investors Common shareholders are treated as residual investers Debtholders and prefered shareholders are conuldered revidual investors Based en your understanding of the difterent ltems reported an the balance sheet and the information they provide, if wrerything elue femains the same, then the cadh and equivalents item on the current balance sheet is tbely te commen stod

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