Green Caterpillar Garden Supplies 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. Green Caterpillar Garden Supplies 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 $6,457 Accounts payable $0 $0
Accounts receivable 2,953 2,363 Accruals 410 0
Inventories 8,662 6,930 Notes payable 2,324 2,187
Total current assets $19,687 $15,750 Total current liabilities $2,187
Net fixed assets: Long-term debt 8,203 6,563
Net plant and equipment $19,250 Total debt $10,937 $8,750
Common equity:
Common stock 21,328 17,063
Retained earnings 9,187
Total common equity $32,813 $26,250
Total assets $43,750 $35,000 Total liabilities and equity $43,750 $35,000
Given the information in the preceding balance sheet—and assuming that Green Caterpillar Garden Supplies 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.