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. 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. Year 2 Year 1 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Liabilities and equity Current liabilities: $3,690 Accounts payable 1,688 1,350 Accruals 4,950 3,960 Notes payable $11,250 $9,000 Total current liabilities $0 234 1,328 1,250 $1,250 Net fixed assets: Net plant and equipment $11,000 4,688 $6,250 3,750 $5,000 Long-term debt Total debt Common equity: Common stock Retained earnings Total common equity Total liabilities and equity 12,188 9,750 5,250 $15,000 $20,000 Total assets $18,750 $25,000 $25,000 $20,000 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 accumulated owed financial obligations decreased from Year 1 to Year 2. This statement is , because: Accruals actually increased from $0 in Year 1 to $234 million at the end of Year 2 The accounts payable account remained $0 for both Years 1 and 2 Notes payable actually increased from $1,328 million to $1,250 million between Years 1 and 2 Statement #2: On December 31 of Year 2, Blue Hamster Manufacturing Inc. had $4,612 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 $11,610 Statement #3: The book value of one of Blue Hamster's fixed assets is calculated as the original cost of the asset minus its annual depreciation expense. This statement is , because: An asset's net book value is calculated by adding its annual depreciation expense to its total historic and installation costs An asset's net book value is calculated by subtracting its accumulated depreciation expense from its total historic and installation costs An asset's net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs Based on your understanding of the different items reported in the balance sheet and the information they provide, which statement regarding Blue Hamster Manufacturing Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company's assets should be listed from those carrying the largest balance to those with the smallest balance. The company's assets should be listed in the order in which they are to be converted into cash. The company's assets should be listed in alphabetical order