You are provided with the following transactions that took place during the year. LO11 Free Cash Transactions Flow ($125,000)

(a) Recorded credit sales $2,500.

(b) Collected $1,900 owed by customers.

(c) Paid amount owed to suppliers $2,750.

(d) Recorded sales returns of $500 and credited the customer’s account.

(e) Purchased new equipment $5,000; signed a long-term note payable for the cost of the equipment.

(f) Purchased a patent and paid $65,000 cash for the asset.

Instructions For each transaction listed, indicate whether it will increase (I), decrease (D), or have no effect (NE) on free cash flow.