Chapter 2 Assignment 2. Balance sheet 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. Blue Hamster Manufacturing 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 sheets for Blue Hamster Manufacturing Inc. for the years ending December 31, Year 2 and 1, respectively Blue Hamster Manufacturing Inc. Balance Sheet For the Year ended December 31 Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: $0 $4,688 $26,562 Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment 73,800 Accounts payable $0 $0 $25,000 $25,000 $75,000 $27,000 Accruals $33,750 $99,000 $225,000$180,000 $79,200 Notes payable Total current liabilities Long-term debt $93,750 $220,000 Total debt $125,000 $100,000 Common equity: Common stock Retained earnings Total common equity $243,750 $195,000 $105,000 $300,000 $500,000 $400,000 Total liabilities and equity $500,000$400,000 $375,000 Total assets Given the information in the preceding balance sheet-and assuming that Blue Hamster outstanding-rea Manufacturing Inc. has 50 million shares of common stock identify the selection that best interprets the information conveyed by the balance sheet d each of the following statements, then t $105,000 en the information in the preceding balance sheet-and assuming that Blue Hamster Manufacturing Inc. has 50 mitlion shares of common stock atstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet. Statement #2: In Year 2, Blue Hamster Manufacturing Inc. was profitable. This statement is because: The cash and equivalents account increased between Years 1 and 2. O Blue Hamster's retained earnings account increased between the end of Years 1 and 2. O Blue Hamster's total assets increased between Years 1 and 2