The following are operating transactions that occurred during the current year. Analyze each transaction and explain if the transaction will increase, decrease, or have no effect on working capital.

a. Purchased inventory on account, $5,400; terms 2/5, n/30.

b. Borrowed $40,000 on a long-term note.

c. Sold old equipment with a book value of $1,000 for $650.

d. Sold marketable securities at a gain of $2,400.

e. Paid $1,200 for insurance covering one year from the date of purchase.