This statement is _____, because

• True
• false

item on the current balance sheet is likely to _____ if the firm..

• decrease
• increase
• remain the same

Cute Camel Woodcraft Company Balance Sheet for Year Ending December 31 Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company 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: Cute Camel's accumulated owed financial obligations decreased from Year 1 to Year 2. This statement is , because: Notes payable actually increased from $1,992 million to $1,875 million between Years 1 and 2. Accruals actually increased from $0 in Year 1 to $352 million at the end of Year 2. The accounts payable account remained $0 for both Years 1 and 2 . Statement \# 2: On December 31 of Year 2, Cute Camel Woodcraft Company had $6,919 million of actual money that it could have spent immediately. This statement is , because: Cute Camel's Year 2 cash and equivalents balance is $17,415. The funds recorded in Cute Camel's cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately. The funds recorded in Cute Camel's accounts receivable account represents funds that are either cash or can be converted into cash almost immediately. Statement \# 3: If Cute Camel ever goes bankrupt, its common shareholders will be paid off first, then its debtholders and preferred stockholders. This statement is , because: Debtholders and preferred shareholders are considered residual investors. Common shareholders are treated as residual investors. Debtholders are treated as residual investors. Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to if the firm buys a new plant and equipment at a cost of $1 million with liquid capital