This statement is $,$ because:

The accruals balance decreased by $$176$ million between Years $1$ and $2$

Total inventories of raw materials, work$-$in$-$process, and final goods decreased by $$742$ million between Year $1$ and Year $2$

Total inventories of raw materials, work$-$in$-$process, and final goods increased from $$2,970$ million to $$3,712$ million between Year $1$ and Year $2$

Statement #$2$: In Year $2,$ Cute Camel Woodcraft Company was profitable.

This statement is $,$ because:

Cute Camel$$s retained earnings account increased between the end of Years $1$ and $2$

Cute Camel$$s total assets increased between Years $1$ and $2$

The cash and equivalents account increased between Years $1$ and $2$

Statement #$3$: One way to interpret the change in Cute Camel$$s accounts receivable balance from Year $1$ to Year $2$ is that more customers purchased new items on credit rather than paying off existing credit accounts.

This statement is $,$ because:

The change from $$2,970$ million to $$3,712$ million reflects a net accumulation of new credit sales

The decrease from $$1,266$ million to $$1,013$ million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit

The $$253$ increase in accounts receivable means either that Year $1$s existing credit customers are not paying off their owed balances and new or existing customers are making additional purchases on credit, or that Year $1$s credit customers have repaid their owed balances and Year $2$ credit sales have exceeded Year $1$s credit sales

Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Cute Camel Woodcraft Company$$s balance sheet is consistent with U$.$S$.$ Generally Accepted Accounting Principles $($GAAP$)?$

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

The company$$s debts should be listed in order of their liquidity.

The company$$s debts are listed in the order in which they are to be repaid.