Consider the following potential events that might have occurred to Global Conglomerate on December 30, 2015. 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. (In all cases, ignore any tax consequences for simplicity.)

a. Global used $20 million of its available cash to repay$20 million of its long-term debt.

Long-term liabilities would (increase or decrease) by $___ million, and cash would (decrease or increase) by the same amount. The book value of equity would be (lower, higher, or unchanged ?) (Round to the nearest integer.)

b. A warehouse fire destroyed $5 million worth of uninsured inventory.

Inventory would (decrease or increase) by $___million, as would the book value of equity.(Round to the nearest integer.)

c. Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.

Long-term assets would (increase or decrease) by $____million, cash would (increase or decrease) by $____ million, and long-term liabilities would (increase or decrease) by $____ million. There would be no change to the book value of equity.(Round to the nearest integer.)

d. A large customer owing $3 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.

(Accounts Receivable or Accounts Payable) would (increase or decrease) by $____ million, as would the book value of equity.(Round to the nearest integer.)

e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by over 50%. (Select the best choice)

A.This event would increase the book value of equity by 50%.

B.This event would decrease inventory by 50%.

C. This event would not affect the balance sheet.

D.This event would increase accounts receivable by 50%.

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

a. This event would not affect the balance sheet.

B. This event would increase accounts payable by the same percentage.

C.This event would decrease cash by the same percentage.

D. This event would decrease accounts receivable by the same percentage.