The balance sheet provides a snapshot of the financial condition of 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.

Blue Hamster Manufacturing 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.Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December $31($Millions of Dollars$)$

Given the information in the preceding balance sheet$-$and assuming that Blue Hamster Manufacturing 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 #$1$: Blue Hamster'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 grad, because:

Blue Hamster's total current liabilities balance decreased by $$3,375$ million between Year $1$ and Year $2$

Blue Hamster's total current asset balance actually increased from $$13,500$ million to $$16,875$ million between Year $1$ and Year $2$

Blue Hamster's total current liabilities balance increased from $$2,025$ million to $$2,531$ million between Year $1$ and Year $2$

Statement #$2$: On December $31$ of Year $2,$ Blue Hamster Manufacturing Inc. had $$6,919$ million of actual money that it could have

spent immediately.

This statement is $,$ because:

The funds recorded in Blue Hamster's cash and equivalents account represents funds that are either cash or can be converted into cash

almost immediately

The funds recorded in Blue Hamster's accounts receivable account represents funds that are either cash or can be converted into cash

almost immediately

Blue Hamster's Year $2$ cash and equivalents balance is $$17,415$

Statement #$3$: One way to interpret the change in Blue Hamster's accounts receivable balance from Year $1$ to Year $2$ is that more

customers purchased new items on credit rather than paying off existing credit accounts.

This statement is

$,$ because:

The decrease from $$2,531$ million to $$2,025$ million implies a net decrease in accounts receivable and that more customers are paying off

their receivables balances than are buying on credit

The change from $$5,940$ million to $$7,425$ million reflects a net accumulation of new credit sales

The $$506$ increase in accounts receivable means either that Year $1\text{'}$s existing credit customers are not paying off their owed balances and

new or existing customers are making additional purchases on credit, or that Year $1\text{'}$s credit customers have repaid their owed balances

and Year $2$ credit sales have exceeded Year $1\text{'}$s credit sales

Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Blue

Hamster Manufacturing Inc.$\text{'}$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.