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 Liabilities and equity Current assets: Current liabilities: Cash and equivalents $7,380 Accounts payable $0 $0 Accounts receivable 3,375 2,700 Accruals 469 Inventories 9,900 7,920 Notes payable 2,656 2,500 Total current assets $22,500 $18,000 Total current liabilities $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 earnings 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