Question

Cold Goose Metal Works Inc. Balance Sheet For the Year ended December 31 Year 2 Year 1 Year 2 Year 1 Liabilities and equity Assets Current liabilities: Current assets: Cash and equivalents $115,312 $92,250 $0 $0 Accounts payable Accounts receivable $42,188 $33,750 Accruals $5,859 $0 Notes payable Inventories $123,750 $99,000 $33,203 $31,250 Total current assets $225,000 Total current liabilities $39,062 $31,250 $281,250 Net fixed assets: Long-term debt $93,750 $117,188 Net plant and equipment $343,750 $275,000 Total debt $125,000 $156,250 Common equity: Common stock $243,750 $304,688 Retained earnings $164,062 $131,250 Total common equity $468,750 $375,000 Total liabilities and equity Total assets $500,000 $500,000 $625,000 $625,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works 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.

Answer 1

Ans. To statement 1	option 3rd
Ans. To statement 2	Incorrect because "option 3rd"
Ans. To statement 3	Incorrect because "option 1st"
Ans.4	Increase
Ans 5.	option 1