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 companys 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 sheets for Cold Goose Metal Works Inc. for the years ending December 31, Year 2 and 1, respectively.

Cold Goose Metal Works Inc.
Balance Sheet
For the Year ended December 31
	Year 2	Year 1		Year 2	Year 1
Assets			Liabilities and equity
Current assets:			Current liabilities:
Cash and equivalents	$464,400 or $184,500 or $490,500	$147,600	Accounts payable	$0	$0
Accounts receivable	$67,500	$54,000	Accruals	$9,375	$0
Inventories	$198,000	$158,400	Notes payable	$53,125	$50,000
Total current assets	$450,000	$360,000	Total current liabilities	$62,500 or $93,750 or $12,500	$50,000
Net fixed assets:			Long-term debt	$187,500	$150,000
Net plant and equipment	$200,000 or $932,500 or $550,000	$440,000	Total debt	$250,000	$200,000
			Common equity:
			Common stock	$487,500	$390,000
			Retained earnings	$262,500 or $393,750 or $210,000	$210,000
			Total common equity	$750,000	$600,000
Total assets	$1,000,000	$800,000	Total liabilities and equity	$1,000,000	$800,000

Given the information in the preceding balance sheetand assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstandingread each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.