NIKE, Inc., with its Canadian headquarters in Thornhill, Ontario, is one of the world's lead- ing manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are presented in millions of dollars.

a. Purchased $216 in equipment; paid by signing a $5 long-term note and fulfilling the rest with cash.
b. Issued $21 in additional shares for cash contributions made by shareholders.
c. Several Nike investors sold their own shares to other investors on the stock exchange for $110 per share.
Required:
1. For each of these events, perform transaction analysis and indicate the account, amount (in millions), and direction of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings:
2. Explain your response to transaction (c).
3. Did these transactions change the extent to which NIKE relied on creditors versus shareholders for financing? Explain.

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