A firm issues $$10$M of short term debt, and acquires a $$20$M real estate asset. What happens to the working capital of the firm?

$(2$ Points$)$

It increases by $$10$M

It declines by $$10$M

It increases by $$30$M

It declines by $$20$M

It increases by $$20$M

$2$

$($follow$-$up from the previous question$)$ If these are the only two actions of the firm, what happens to total assets?

$(2$ Points$)$

Total assets increase by $$10$M

Total assets increase by $$20$M

Total assets increase by $$30$M

$3$

$($follow$-$up from the previous question$)$ What happens to the net income?

$(2$ Points$)$

The net income increases by $$10$M

The net income is unchanged

The net income declines by $$10$M