Consider the following potential events that might have occurred to Global on December 30, 2019. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Global's book value of equity.

a. Global used 19.5 million of its available cash to repay 19.6 million of its long-term debt.

b. A warehouse fire destroyed 4.6 million worth of uninsured inventory.

c. Global used million in cash and 5.5 million in new long-term debt to purchase a 10.3 million building.

d. A large customer owing 3.3 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.

e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48%. f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.

a. Global used 19.6 million of its available cash to repay 19.6 million of its long-term debt.(Select the best choice below.)

A. Long-term liabilities would increase by million, and cash would increase by the same amount. The book value of equity would be unchanged.

B. Long-term liabilities would decrease by million, and cash would decrease by the same amount. The book value of equity would be unchanged.

C. Long-term liabilities would decrease by million, and cash would decrease by the same amount. The book value of equity would change by .

D. Long-term liabilities would decrease by million, and cash would increase by the same amount. The book value of equity would be unchanged.

b. A warehouse fire destroyed 4.6 million worth of uninsured inventory.(Select the best choice below.)

A. Inventory would increase by 4.6 million, and the book value of equity would decrease by the same amount.

B. Inventory would increase by 4.6 million, as would the book value of equity.

C. Inventory would decrease by 4.6 million, and the book value of equity would be unchanged.

D. Inventory would decrease by 4.6 million, as would the book value of equity.

c. Global used million in cash and 4.8 million in new long-term debt to purchase a 10.3 million building.(Select the best choice below.)

A. Long-term assets would decrease by 10.3 million, cash would decrease by 4.8 million, and long-term liabilities would increase by million. There would be no change to the book value of equity.

B. Long-term assets would increase by 10.3 million, cash would increase by 4.8 million, and long-term liabilities would increase by 5.5 million. There would be no change to the book value of equity.

C. Long-term assets would decrease by 10.3 million, cash would increase by 4.8 million, and long-term liabilities would decrease by 5.5 million. There would be no change to the book value of equity.

D. Long-term assets would increase by10.3 million, cash would decrease by 4.8 million, and long-term liabilities would increase by 5.5 million. There would be no change to the book value of equity.

d. A large customer owing 3.3 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.(Select the best choice below.)

A. Accounts receivable would increase by 3.3 million, and the book value of equity would decrease by the same amount. B. Accounts receivable would decrease by 3.3 million, and the book value of equity would increase by the same amount. C. Accounts receivable would increase by 3.3 million, as would the book value of equity.

D. Accounts receivable would decrease by 3.3 million, as would the book value of equity.

e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48%. (Select the best choice below.)

A. This event would not affect the balance sheet 48%.

B. This event would decrease inventory by over .48%

C. This event would decrease inventory by over and the book value of equity would decrease by the same amount 48%.

D. This event would decrease inventory by over 48% and the book value of equity would increase by the same amount.

f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.(Select the best choice below.)

A. This event would decrease the book value of equity.

B. This event would affect the balance sheet in an unpredictable manner.

C. This event would decrease inventory.

D. This event would not affect the balance sheet.