${?}^1$ Cost of goods sold equals $40\%$ of sales.

${?}^2$ Interest expense equals $6\%$ of the combined notes payable and long$-$term debt balances.

${?}^3$ The average federal and state tax rate is $35\%.$

Indicate if any of the listed financial statement accounts is affected by the following business transactions and whether the listed ratios will increase, decrease, or remain unchanged as a result of the transaction. $($Hint: Assume that the business transaction occurs exactly as stated without interpreting it further. Do not consider any related transactions that may occur before or after the specified transaction. Assume there are $365$ days in a year.$)$

Business Transaction $1$

Lancashire Railway Co$.($Lancashire$)$ sells $$165,000$ of merchandise on credit.

Financial Account Check if the Account Is Affected by the Specified Transaction

Inventory

Accounts payable

Cash

Accounts receivable

Sales