The balance sheet provides a snapshot of the finandal condition of a company. Investors and analysts use the information given on the balance sheet and other finandal 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 sheet. 0 Green Caterpillar Garden Supplies Inc. Balance Sheet for Year Ending December 31 (Millions of dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $8,072 $6,457 Accounts payable $0 $0 Accounts recevable 2,953 2,363 Accruals 410 Inventories 8,662 6,930 Notes payable 2,324 2,187 Total current assets $19,687 $15,750 Total current liabilities $2,734 $2,187 Net fixed assets: Long-term debt 8,203 6,563 Net plant and equipment $24,063 $19,250 Total debt $10,937 $8,750 Common equity: Common stock 21,328 17,063 Retained earnings 11,485 9,187 Total common equity $32,813 $26,250 Total assets $43,750 $35,000 Total liabilities and equity $43,750 $35,000 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. The balance sheet provides a snapshot of the finandal condition of a company. Investors and analysts use the information given on the balance sheet and other finandal 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 sheet. 0 Green Caterpillar Garden Supplies Inc. Balance Sheet for Year Ending December 31 (Millions of dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $8,072 $6,457 Accounts payable $0 $0 Accounts recevable 2,953 2,363 Accruals 410 Inventories 8,662 6,930 Notes payable 2,324 2,187 Total current assets $19,687 $15,750 Total current liabilities $2,734 $2,187 Net fixed assets: Long-term debt 8,203 6,563 Net plant and equipment $24,063 $19,250 Total debt $10,937 $8,750 Common equity: Common stock 21,328 17,063 Retained earnings 11,485 9,187 Total common equity $32,813 $26,250 Total assets $43,750 $35,000 Total liabilities and equity $43,750 $35,000 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
