Please answer

Balance sheet

The balance sheet provides a shaphot of the financial condrien of a company. Investers and analyazs use the information given on the balance

shent and ocher financial statements to make several interpretations regarding the company's financlal conditien and performance.

Green Catersillar Garden Sugplies bec. is a bypotetical cempany. Suppose it has the following balance sheet items resorted at the end of its first year

of ogeration. For the second year, some parts are still incemplete. Use the information given to complece the balance sheets for Green Caterpilar

Garden Supplies Inc, for the vears ending December $31,$ Year $2$ and $1,$ respectively.

Green Caterpillar Garden Supplies Inc.

Balance Sheet.

For the Year ended December $31$

Given the information in the preceding balace sheec$-$and assuming that Green Caterpllar Garden Subolies the. has $50$ millon shares of common

stock outstanding$-$read each of the following statements, then iderify the selection this best interprets the informasion conveyed by the batance

ehener.

Statement a $3$: One way to interpret the change in Green Caterpillar's accounts receivable balance from Year $1$ to Year $2$ is that more

customers purchased new ikems on credit rather than paying off exlitting credit accounts.

This statement is

because:

receivables balances than are buving en credit.

The change from $$198,000$ to $$247,500$ reflects a net acoumulation of new credit sales.

The $$16,975$ increase in accounts receivable means either that vear $1\text{'}$s exilying crefit costemens are not paving off their ewed balances

and new of existing customers are making additional purchases on credit, or that Year $1\text{'}8$ credit customers have repaid their owed

balances and Year $2$ credit sales have exceefed rear $1\text{'}$s cresit sales.

Based on your understanding of the different items reported in the balance sheet and the information they provide, which statement regarding Green

Caterpilar Garden Supplies Inc's balance sheet is consistent with U$.$S$.$ Generally Accepted Accounting Prinololes $($GAAP$)?$

The company's assets should be listed in the order in which ther are to be converted into cash.

The company's assets should be listed in alphabetical order

The company's assets should be listed from those carrying the largest balance to those with the smallest balance.