Authentic Exposure Company had the following transactions that took place during the year:

	I.	Paid amount owing to suppliers $2,750.
	II.	Purchased new equipment for $5,000 by signing a long-term note payable.
	III.	Purchased a patent and paid $15,000 cash for the asset.

How what is the total effect of these transactions on free cash flow?

Cash Flow

a. Increase

b. No Effect

c. Cannot be determined

d. Decrease