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. Cute Camel Woodcraft Company 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. Cute Camel Woodcraft Company 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 ( $2,767 Accounts payable $0 $0 Accounts receivable 1,266 1,013 Accruals 176 Inventories 3,712 2,970 Notes payable 996 937 Total current assets $8,437 $6,750 Total current liabilities $937 Net fixed assets: Long-term debt 3,515 2,813 Net plant and equipment 8,250 Total liabilities $4,687 $3,750 Common equity: Common stock 9,141 Retained earnings 7,313 3,937 $11,250 $15,000 Total common equity Total liabilities and equity $14,063 $18,750 Total assets $18,750 $15,000 Statement #1: Cute Camel's net collection of inventory items increased by more than the firm sold between Years 1 and 2. This statement is , because: The ad correct ce decreased by $176 million between Years 1 and 2. Total i med If raw materials, work-in-process, and final goods increased from $2,970 million to $3,712 million between Yes Year 2 This statement is , because: The accruals balance decreased by $176 million between Years 1 and 2 Total inventories of raw materials, work-in-process, and final goods increased from $2,970 million to $3,712 million between Year 1 an Year 2 Total inventories of raw materials, work-in-process, and final goods decreased by $742 million between Year 1 and Year 2. Statement #2: On December 31 of Year 2, Cute Camel Woodcraft Company had $3,459 million of actual money that it could have spent immediatel This statement is , because: The ful correct din Cute Camel's cash and equivalents account represents funds that are either cash or can be converted into cash almost incorrect This statement is , because: The funds recorded in Cute Camel's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately O Cute Camel's Year 2 cash and equivalents balance is $8,707. The funds recorded in Cute Camel's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately Statement #3: If Cute Camel ever goes bankrupt, its common shareholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: incorrect Iders are treated as residual investors. O Debthd correct referred shareholders are considered residual investors. Statement #3: If Cute Camel ever goes bankrupt, its common shareholders will be paid off first, then its debtholders and preferred stockholders. This statement is because: Common shareholders are treated as residual investors Debtholders and preferred shareholders are considered residual investors. O Debtholders are treated as residual investors. Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Cu Camel Woodcraft Company's balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's debts are listed in the order in which they are to be repaid. O The company's debts should be listed from those carrying the largest balance to those with the smallest balance. The company's debts should be listed in order of their liquidity