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Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 675 Accruals 117 0 $6,131 Inventories 1,980 Notes payable 664 625 Total current assets $7,256 $4,500 Total current liabilities $625 Net fixed assets: $2,306 Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total common equity $9,375 $7,500 Total assets $12,500 $10,000 $10,000 Total liabilities and equity $12,500 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. has 50 million shares of commo outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the ball Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 844 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: $11,656 Common stock 6,094 4,875 $6,875 Retained earnings 2,625 Total common equity $9,375 $7,500 $10,520 Total assets $10,000 Total liabilities and equity $12,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. has 50 million shares of common s outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balan Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years I and 2. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 8441 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 1,875 $781 Net plant and equipment $5,500 Total debt $2,500 Common equity: $976 Common stock 4,875 $1,172 Retained earnings 2,625 Total common equity $9,375 $7,500 Total assets $12,500 $10,000 Total liabilities and equity $12,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. 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 shee Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 844 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total common equity $7,500 2,625 Total assets $12,500 $10,000 Total liabilities and equity $10,000 3,281 Given the information in the preceding balance sheet-and assuming that Cold Goose Met outstanding-read each of the following statements, then identify the selection that best i 12,375 nc. has 50 million shares of common the information conveyed by the ball Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is because: O The acc correct decreased by $117 million between Years 1 and 2 Total inv incorrect raw materials, work-in-process, and final goods decreased by $495 million between Year 1 and Year 2 Total inventories of raw materials, work-in-process, and final goods increased from $1,980 million to $2,475 million between Year I and Year 2 Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable. This statement is , because: O Cold God true ained earnings account increased between the end of Years 1 and 2 O The cash false uivalents account increased between Years 1 and 2 O Cold Goose's total assets increased between Years 1 and 2 Statement #3: One way to interpret the change in Cold Goose'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 $1,980 million to $2,475 million reflects a net accumulation of new credit sales The decrease from $844 million to $675 million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit O The $169 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 in the balance sheet and the information they provide, which statement regarding Cold Goose Metal Works Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)> O The company's assets should be listed in alphabetical order. O The company's assets should be listed from those carrying the largest balance to those with the smallest balance. The company's assets should be listed in the order in which they are to be converted into cash. 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance s and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 675 Accruals 117 0 $6,131 Inventories 1,980 Notes payable 664 625 Total current assets $7,256 $4,500 Total current liabilities $625 Net fixed assets: $2,306 Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total common equity $9,375 $7,500 Total assets $12,500 $10,000 $10,000 Total liabilities and equity $12,500 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. 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 shee 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets: Liabilities and equity Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 8441 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 1,875 $781 Net plant and equipment $5,500 Total debt $2,500 Common equity: $976 Common stock 4,875 $1,172 Retained earnings 2,625 Total common equity $9,375 $7,500 Total assets $12,500 $10,000 Total liabilities and equity $12,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. 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. 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Current assets: Liabilities and equity Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 844 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: $11,656 Common stock 6,094 4,875 $6,875 Retained earnings 2,625 Total common equity $9,375 $7,500 $10,520 Total assets $10,000 $10,000 Total liabilities and equity $12,500 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. has 50 million shares of comm outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information and other financial statements to make several interpretations regarding the company's financial condition and performanc Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the em operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 844 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total common equity $7,500 Total assets 2,625 $12,500 $10,000 Total liabilities and equity $10,000 3,281 Given the information in the preceding balance sheet-and assuming that Cold Goose Met outstanding-read each of the following statements, then identify the selection that best i 12,375 Inc. has 50 million shares of the information conveyed b Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is because: O The accruals balance decreased by $117 million between Years 1 and 2 O Total inventories of raw materials, work-in-process, and final goods decreased by $495 million between Year 1 and Year 2 Total inventories of raw materials, work-in-process, and final goods increased from $1,980 million to $2,475 million between Year I and Year 2 Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable. This statement is because: Cold Goose's retained earnings account increased between the end of Years 1 and 2 O The cash and equivalents account increased between Years 1 and 2 O Cold Goose's total assets increased between Years 1 and 2 Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is , because: The acc correct decreased by $117 million between Years 1 and 2 Total inv incorrect raw materials, work-in-process, and final goods decreased by $495 million between Year 1 and Year 2 Total inventories of raw materials, work-in-process, and final goods increased from $1,980 million to $2,475 million between Yea Year 2 Statement #3: One way to interpret the change in Cold Goose'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: O The change from $1,980 million to $2,475 million reflects a net accumulation of new credit sales The decrease from $844 million to $675 million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit The $169 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 in the balance sheet and the information they provide, which statement regarding Cold Goose Metal Works Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? O The company's assets should be listed in alphabetical order. O The company's assets should be listed from those carrying the largest balance to those with the smallest balance, The company's assets should be listed in the order in which they are to be converted into cash. Save & Continue 2. Balance sheet. The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 50 Accounts receivable 844 675 Accruals: 117 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities Y $625 Net fixed assets: Long-term debt. 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total common equity $9,375 $7,500 Total assets $12,500 $10,000 Total liabilities and equity $12,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. 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. The balance sheet and other financial statements to make several interpretations ra Cold Goose Metal Works Inc. is a hypothetical company. Suppose operation. For the second year, some parts are still incomplete. Cold Goose Metal Works Inc. Balance Sheet for Year Endi Year 2 Year 1 Assets Liabi Current assets: Curre Cash and equivalents $1,845 Accou Accounts receivable 675 Accru $6,131 Inventories 1,980 Notes Total current assets $7,256 $4,500 Total Net fixed assets: $2,306 Long- Net plant and equipment $5,500 Total Comm Comm Retain Total C Total assets $12,500 $10,000 Total li Given the information in the preceding balance sheet-and assumir outstanding-read each of the following statements, then identify t Statement #1: Cold Goose's net collection of inventory items Year 2 Liabilities and equity Assets Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 844 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 1,875 $781 Net plant and equipment $5,500 Total debt $2,500 Common equity: $976 Common stock $1,172 4,875 Retained earnings 2,625 Total assets Total common equity $9.375 $12,500 $7,500 $10,000 Total liabilities and equity $12,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. has 50 million shaw outstanding-read each of the following statements, then identify the selection that best interprets the information conver Back to Assignment Attempts Keep the Highest/5 2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and an and other financial statements to make several interpretations regarding the company's financial Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance she operation. For the second year, some parts are still incomplete. Use the information given to com Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of L Year 2 Year 1 Year 2 Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $1,845 Accounts payable $0 Accounts receivable 844 675 Accruals 117 Inventories 2,475 1,980 Notes payable! 664 Total current assets $5,625 $4,500 Total current liabilities Net fixed assets: Long-term debt 2,344 Net plant and equipment $5,500 Total debt $3,125 Common equity: $11,656 Common stock 6,094 $6,875 Retained earnings $10,520 Total common equity $9,375 Total assets $10,000 Total liabilities and equity $12,500 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. outstanding-read each of the following statements, then identify the selection that best interprets the arch Statement #1: Cold Goose's net collection of inventory items increased by more than the firm's sal GAGE ssignment-Financial Statements, Cash Flow, and Taxes Assignment pts alance sheet Keep the Highest/5 balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the inform other financial statements to make several interpretations regarding the company's financial condition and perfo Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at ration. For the second year, some parts are still incomplete. Use the information given to complete the balance sh old Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Liabilities and equity ssets Current liabilities: Current assets: Cash and equivalents $1,845 Accounts payable $0 $0 Accounts receivable 8441 675 Accruals 117 0 Inventories 2,475 1,980 Notes payable 664 625 Total current assets $5,625 $4,500 Total current liabilities $625 Net fixed assets: Long-term debt 2,344 1,875 Net plant and equipment $5,500 Total debt $3,125 $2,500 Common equity: Common stock 6,094 4,875 Retained earnings 2,625 Total assets Total common equity $12,500 $7,500 $10,000 Total liabilities and equity 2,625 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Met outstanding-read each of the following statements, then identify the selection that best 3,281 12,375 nc. has 50 million sha the information conve Statement #1 Cold C Ch 03: Assignment - Financial Statements, Cash Flow, and Taxes Total assets $12,500 $10,000 $9,375 Total common equity Total liabilities and equity $12,500 $7,500 $10,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. 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: Cold Goose's net collection of inventory items increased by more than the firm's sales between Years 1 and 2. This statement is because: O The accruals balance decreased by $117 million between Years 1 and 2 Total inventories of raw materials, work-in-process, and final goods decreased by $495 million between Year 1 and Year 2 Total inventories of raw materials, work-in-process, and final goods increased from $1,980 million to $2,475 million between Year 1 and Year 2 Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable. This statement is because: O Cold Goose's retained earnings account increased between the end of Years 1 and 2 O The cash and equivalents account increased between Years 1 and 2 O Cold Goose's total assets increased between Years 1 and 2 This statement is The accr because: correcte decreased by $117 million be O Total inv incorrect raw materials, work-in-process Total inventories of raw materials, work-in-process, Year 2 Statement #3: One way to interpret the change in Cold Goose'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 $1,980 million to $2,475 million reflects a net accumulation of new credit sales The decrease from $844 million to $675 million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit The $169 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 in the balance sheet and the information they provide, which statement regarding Cold Goose Metal Works Inc.'s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? O The company's assets should be listed in alphabetical order. O The company's assets should be listed from those carrying the largest balance to those with the smallest balance. The company's assets should be listed in the order in which they are to be converted into cash

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