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 sheets for Green Caterpillar Garden Supplies Inc. for the years ending December 31, Year 2 and 1, respectively. Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year ended December 31 Year 2 Year 1 Year 2 Year 1 Assets $0 $0 Current assets: Cash and equivalents Accounts receivable Inventories Total current assets $2,344 $0 $16,875 $49,500 $112,500 $13,281 $12,500 Net fixed assets: Net plant and equipment Liabilities and equity Current liabilities: $36,900 Accounts payable $13,500 Accruals $39,600 Notes payable $90,000 Total current liabilities Long-term debt $110,000 Total debt Common equity Common stock Retained earnings Total common equity $200,000 Total liabilities and equity $46,875 $62,500 $12,500 $37,500 $50,000 $121,875 $97,500 $52,500 $150,000 $200,000 $187,500 $250,000 Total assets $250,000 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 Statement #1: Green Caterpillar'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: Green Caterpillar's total current liabilities balance decreased by $22,500 between Year 1 and Year 2. Green Caterpillar's total current asset balance actually increased from $90,000 to $112,500 between Year 1 and Year 2. Green Caterpillar's total current asset balance decreased from $112,500 to $90,000 between Year 1 and Year 2. Green Caterpillar's total current liabilities balance increased from $13,500 to $16,875 between Year 1 and Year 2. 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 because Green Caterpillar's total current liabilities decreased by $3,125, while its long-term debt account decreased by $9,375. Green Caterpillar's total current liabilities increased by $3,125, while its use of long-term debt increased by $9,375. Green Caterpillar's total notes payable increased by $781, while its common stock account increased by $24,375. Statement #3: The book value per share of Green Caterpillar's stock in Year 2 was $3,750. This statement is because: The per-share book value is calculated by dividing the company's total assets by the number of outstanding shares of common stock, The per share book value is calculated by dividing the company's total debt by the number of outstanding shares of common stock. The per-share book value is calculated by dividing the company's total common equity by the number of outstanding shares of common stock Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Green Caterpillar Garden Supplies Inc.'s 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 debts should be listed from those carrying the largest balance to those with the smallest balance, The company's debts are listed in the order in which they are to be repaid