A company purchases supplies paying cash. When this transaction is recorded, the accounting equation would be affected as follows: r d. Assets increase and liabilities increase. 1. One asset account increases and another asset account decreases. o Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and stockholders' equity increases. O e Assets increase and stockholders' equity increases. Porcupine, Ltd. is working on its cash budget for May. The budgeted beginning cash balance is $20,000. Budgeted cash receipts total $509,200 and budgeted cash disbursements total $522,700. The desired ending cash balance is $19,000. To attain its desired ending cash balance for May, the company needs to borrow: a. $14,500 b.$12,500 C.$13,500 d. $6,500 e.so