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. Cold Goose Metal Works 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. Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works 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 shee Statement \#1: Cold Goose's pool of relatively liquid assets, which are available to support the company's current and future sales, decreased from Year 1 to Year 2. This statement is , because: Cold Goose's total current liabilities balance increased from $1,688 miltion to $2,109 million between Year 1 and Year 2 Cold Goose's total current liabilities balance decreased by $2,812 million between Year 1 and Year Z Cold Goose's total current asset balance actually increased from $11,250 million to $14,062 million between Year 1 and Year 2 Statement 2: In Year 2, Cold Goose Metal Works Inc. was profitable. Statement \#2: In Year 2, Cold Goose Metal Works Inc. was profitable. This statement is , because: Cold Goose's total assets increased between Years 1 and 2 Cold Goose's retained earnings account increased between the end of Years 1 and 2 The cash and equivalents account increased between Years 1 and 2 Statement \#3: If Cold Goose ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: Debtholders and preferred shareholders are considered residual investors Debtholders are treated as residual investors Common shareholders are treated as residual investors Bated on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Cold Goose Metal Works incis balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's debts should be listed in order of their liquidity. The company's debes are listed in the erder in which they are to be repaid. The company's debts should be listed from those carrying the largest balance to those with the smaliest balance
