This statement is $q,,$ because:

Cute Camel's tota III nt liabilities balance increased from $$2,025$ million to $$2,531$ million between Year $1$ and Year $2.$

Cute Camel's total current asset balance actually increased from $$13,500$ million to $$16,875$ million between Year $1$ and Year $2.$

Cute Camel's total current liabilities balance decreased by $$3,375$ million between Year $1$ and Year $2.$

Statement #$2$: Over the past two years, Cute Camel Woodcraft Company has relied more on the use of short$-$term debt than on long$-$term debt financing.

This statement is $,$ because:

Cute Camel's total notes payable increased by $$117$ million, while its common stock account increased by $$3,656$ million.

Cute Camel's total current liabilities decreased by $$469$ million, while its long$-$term debt account decreased by $$1,406$ million.