The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet nd other financial statements to make several interpretations regarding the company's financial condition and performance. iute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end its first year of peration. 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) Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company 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 shet Statement #1: Cute Camel'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: Cute Camel's total current asset balance actually increased from $15,750 million to $19,687 million between Year 1 and Year 2 Cute Camel's total current liabilities balance increased from $2,363 million to $2,953 milion between Year 1 and Year 2 Cute Camel's total current liabilities balance decreased by $3,937 million between Year 1 and Year 2 Statement #2: In Year 2, Cute Camel Woodcraft Company was profitable. This statement is, because: Cute Camel's total assets increased between Years 1 and 2 The cash and equivalents account increased between Years 1 and 2 Cute Camel's retained earnings account increased between the end of Years 1 and 2 Statement #3: If Cute Camel ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: Debtholders and prefered shareholders are considered residual investors Debtholders are treated as residual investors Common shareholders are treated as residual investors Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to if the firm issues $3 million of new common stock. The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet nd other financial statements to make several interpretations regarding the company's financial condition and performance. iute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end its first year of peration. 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) Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company 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 shet Statement #1: Cute Camel'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: Cute Camel's total current asset balance actually increased from $15,750 million to $19,687 million between Year 1 and Year 2 Cute Camel's total current liabilities balance increased from $2,363 million to $2,953 milion between Year 1 and Year 2 Cute Camel's total current liabilities balance decreased by $3,937 million between Year 1 and Year 2 Statement #2: In Year 2, Cute Camel Woodcraft Company was profitable. This statement is, because: Cute Camel's total assets increased between Years 1 and 2 The cash and equivalents account increased between Years 1 and 2 Cute Camel's retained earnings account increased between the end of Years 1 and 2 Statement #3: If Cute Camel ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: Debtholders and prefered shareholders are considered residual investors Debtholders are treated as residual investors Common shareholders are treated as residual investors Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to if the firm issues $3 million of new common stock
