Impacts on Risks and Returns Areas. Business events impact each of these financial performance areas:

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Indicate the major impacts that the following business events have on the firm's financial performance categories. Will these impacts strengthen (S), weaken (W), or not change (NC) each area? List each event as a row and each performance category as a column. Make a brief note in each cell to explain your answer.

(a) Credit terms to customers lengthened from 30 to 60 days.

(b) Dividend declared and paid.

(c) Long-term debt issued for cash.

(d) Shares issued in trade for production equipment.

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1. Liquidity 4. Growth 2. Capital adequacy 5. Earnings 3. Asset quality