This statement is false $,$ because:

Cold Goose$$s total current liabilities balance increased from $$675$ million to $$844$ million between Year $1$ and Year $2$

Cold Goose$$s total current asset balance actually increased from $$4,500$ million to $$5,625$ million between Year $1$ and Year $2$

Cold Goose$$s total current liabilities balance decreased by $$1,125$ million between Year $1$ and Year $2$

Statement #$2$: Over the past two years, Cold Goose Metal Works Inc. has relied more on the use of short$-$term debt than on long$-$term debt financing.

This statement is $,$ because:

Cold Goose$$s total current liabilities decreased by $$156$ million, while its long$-$term debt account decreased by $$469$ million

Cold Goose$$s total notes payable increased by $$39$ million, while its common stock account increased by $$1,219$ million

Cold Goose$$s total current liabilities increased by $$156$ million, while its use of long$-$term debt increased by $$469$ million

Statement #$3$: The book value of one of Cold Goose$$s fixed assets is calculated as the original cost of the asset minus its annual depreciation expense.

This statement is $,$ because:

An asset$$s net book value is calculated by adding its annual depreciation expense to its total historic and installation costs

An asset$$s net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs

An asset$$s net book value is calculated by subtracting its accumulated depreciation expense from its total historic and installation costs

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.