Given the information in the preceding balance sheet-and assuming that Blue Hamster Manufacturing 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. Statement #1: Blue Hamster's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is because: Total inventories of raw materials, work-in-process, and final goods decreased by $990 million between Year 1 and Year 2 The accruals balance decreased by $234 million between Years 1 and 2 Total inventories of raw materials, work-in-process, and final goods increased from $3,960 million to $4,950 million between Year 1 and Year 2 Statement #2: Over the past two years, Blue Hamster Manufacturing Inc. has relied more on the use of short-term debt than on long- term debt financing. This statement is because: Blue Hamster's total current liabilities increased by $312 million, while its use of long-term debt increased by $938 million Blue Hamster's total notes payable increased by $78 million, while its common stock account increased by $2,438 million Blue Hamster's total current liabilities decreased by $312 million, while its long-term debt account decreased by $938 million