Question

2. Balance sheet Aa Aa 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 Current assets: Cash and equivalents Accounts receivable Inventories $0 $4,612 1,688 4,950 Liabilities and equity Current liabilities: Accounts payable Accruals Notes payable $0 234 $3,690 1,350 3,960 $9,000 0 1,328 1,250 Total current assets $11,250 Total current liabilities $1,562 $1,250 4,688 3,750 Net fixed assets: Net plant and equipment $13,750 $11,000 $6,250 $5,000 Long-term debt Total debt Common equity: Common stock Retained earnings Total common equity Total liabilities and equity 12,188 6,562 9,750 5,250 $15,000 $20,000 $18,750 Total assets $25,000 $20,000 $25,000
I need help with the statement questions please.

Answer 1

STATAEMENT 1- This statement is true, beccause

Option 1- GreenCaterpillars total current asses balance actually increased from $9,000million to $11,250 million between year 1 and year 2

STATEMENT 2- This statement is true, because

Option 2- Green Caterpillar's retained earning account increased between the end of years 1 and 2

STATEMENT 3- This statement is true, because

Option 1- An assets net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs.