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Year 2 Year 1 184 68 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment

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Year 2 Year 1 184 68 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment Nitreca Chemicals Inc. Balance Sheet For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Liabilities and equity Current liabilities: Accounts payable Accruals 247 198 Notes payable 562 450 Total current liabilities Long-term debt 550 Total debt Common equity: Common stock Retained earnings Total common equity 1,000 Total liabilities and equity 488 262 Total assets 750 1,000 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 about the company. According to the information given in the preceding balance sheet and considering that the company has 50 million outstanding shares, which of the following interpretations are true for Nitreca Chemicals Inc.? Check all that apply. Nitreca Chemicals Inc. has $231 million of actual money that it can spend immediately. Nitreca Chemicals Inc.'s net operating working capital in the first year was $450 million The asset side and liabilities side of a balance sheet list accounts in the order of their liquidity. The book value per share of Nitreca Chemicals Inc.'s stock in the second year was $18.76. If Nitreca Chemicals Inc. ever goes bankrupt, its common shareholders will be paid off first and then its debtholders and preferred shareholders. The market value of a company's stock is always more than its book value

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