Question

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 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 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 liabilities: Current assets: $0 410 2,324 $0 Cash and equivalents Accounts receivable Inventories $6,457 Accounts payable 2,953 8,662 $19,687 2,363 6,930 $15,750 Accruals 2,187 $2,187 6,563 $8,750 Notes payable Total current assets Total current liabilities 8,203 $10,937 Net fixed assets: Long-term debt Net plant and equipment $19,250 Total debt Common equity: 17,063 9,187 $26,250 $35,000 Common stock 21,328 Retained earnings Total common equity Total liabilities and equity $32,813 $43,750 Total assets $43,750 $35,000

Answer 1

Please provide rating.....

	Balance sheet missing figure ..
a	Cash and cash equivalent				=19687-8662-2953
	Total current asset - AR - Inventory				8072
b	Net plant and equipment				=43750-19687
	Total asset - Current asset				24063
c	Total Current liabilities				=0+410+2324
	Account payable+Accruals+Note payable				2734
d	Retained earning				=32813-21328
	Total common equity - Common stock				11485
Statement # 1
	Statement is False : Green Caterpillar's total current asset balance actually increased from $ 15750 million to 19687 million between year 1 and year 2
Statement # 2
	Statement is False : Green Caterpillar total current liabilities increased by 547 million while its use of long term debt increased by 1640 million
Statement # 3
	Statement is false : An asset's net book value is calculated by subtracting its accumulated depreciation expenses from its total historic and installation cost
Q -5	Correct statement is : The company's assets should be listed in the order in which they are to be converted into cash.