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Blue Hamster Manufacturing 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

Blue Hamster Manufacturing 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. Us he information given to complete the balance sheet Blue Hamster Manufacturing Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Liabilities and equity Assets Current assets: Current liabilities: Cash and equivalents $1,384 $1,107 Accounts payable $0 $0 Accounts receivable 506 405 Accruals 70 1,485 Inventories 1,188 Notes payable 399 375 $3,375 $469 $2,700 Total current liabilities $375 Total current assets Net fixed assets: 1,125 Long-term debt 1,406 Net plant and equipment $4,125 $3,300 Total debt $1,875 $1,500 Common equity 2,925 Common stock 3,656 Retained earnings 1,969 1,575 Total common equity $5,625 $4,500 Total assets $7,500 $6,000 Total liabilities and equity $6,000 $7,500 Given the information in the preceding balance sheet-and assuming that Blue Hamster Manufacturing 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.

 

May 21 2020 View more View Less

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