1. Identify what accounts on the balance sheet and income statement will be affected and how (increase or decrease) as a result of the following operations/transactions by the firm:

a) Purchase new equipment for cash

b) Issue 20-year debt and put the proceeds aside as cash

c) Purchase supplies from a supplier on credit, without paying cash

d) Pay supplier cash for supplies previously (2 months ago) purchased on credit

e) Repurchase equity from existing shareholders for cash

2. Identify whether the following changes in accounts on the balance sheet represent a source or a use of funds of the firm that is whether they produce funds for uses somewhere else (source of funds) or whether they need/require available funds to occur (use of funds):

a) Increase in Accounts Receivable

b) Decrease in Current Debt

c) Decrease in Shareholders Equity

d) Decrease in Gross Property Plant and Equipment

e) Decrease in Cash and Marketable Securities f) Increase in Treasury Stock