Year 2 Year 1 Year 2 Year 1 abilities and equity Assets Current assebs: Current liabilibes: $0 129 730 $859 2,578 $3,437 $0 0 687 $687 2,063 $2,750 Cash and equivalents 42,537] 2,029 Accounts payable Inventories Total current assebs Net fixed assets: 928 2,722 $5,187 743 Aoruals 2,178 Notes payable Total current liabilities Long-term debt Total debt $4,950 Net plant and equipment 37,563] $6,050 Common equity: 6,703 3,610 $10,313 $13,750 5,363 2,887 $8,250 $11,000 Common stock Retained earnings Total common equity Total liabilities and equity Total assets $13,750 11,000 Given the information in the preceding balance sheet-and assuming that Green Caterpillar Garden Supplies Inc. has 50 milliaon shares of common stock outstanding-read each of the following statements, then identbify the selection that best interprets the information conveyed by the balanoe sheet Statement # 1: Green Caterpillar's net collection of inventory items increased by more than the firm sold bebween Years 1 and 2 This statement is , because: The acouals balance de eased by $129 million between Years 1 and 2 O Total inventories of raw materials, wark-in-process, and final goods increased from $2,178 million to $2,722 milion bebween Year 1 and Year 2 O Total inventories of raw materials, work-in-process, and final goods decreased by $544 millian bebween Year 1 and Year 2 Statement #2: On December 31 of Year 2, Green Caterpillar Garden supplies Inc. had $2,537 million of actual money that it could have spent immediately This stabement is O Green Caterpillars Year 2 cash and equivalents balance is 36,385 funds recorded in Green Caterpillar's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately funds recorded in Green Caterpillar's accounts recevable account represents funds that are either cash or can be converted into cash almost immediately