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\mathrm{.}3$$$19\mathrm{.}3$ million of its available cash to repay $ $19\mathrm{.}3$$$19\mathrm{.}3$ million of its$$ long$-$term debt.

b$.$ A warehouse fire destroyed $ $5\mathrm{.}2$$$5\mathrm{.}2$ million worth of uninsured inventory.

c$.$ Global used $ $5\mathrm{.}1$$$5\mathrm{.}1$ million in cash and $ $5\mathrm{.}2$$$5\mathrm{.}2$ million in new$$ long$-$term debt to purchase a $ $10\mathrm{.}3$$$10\mathrm{.}3$ million building.

d$.$ A large customer owing $ $2\mathrm{.}6$$$2\mathrm{.}6$ million for products it already received declared$$ bankruptcy, leaving no possibility that Global would ever receive payment.

e$.$Global$\text{'}$s engineers discover a new manufacturing process that will cut the cost of its flagship product by more than $50\%50\%.$

f$.$ A key competitor announces a radical new pricing policy that will drastically undercut$$ Global's prices.

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Part $1$

a$.$ Global used $ $19\mathrm{.}3$$$19\mathrm{.}3$ million of its available cash to repay $ $19\mathrm{.}3$$$19\mathrm{.}3$ million of its$$ long$-$term debt.$($Select the best choice$$ below.$)$

A$.$

$$Long$-$term liabilities would decrease by $ $19\mathrm{.}3$$$19\mathrm{.}3$million$,$ and cash would decrease by the same amount. The book value of equity would be unchanged.

B$.$

$$Long$-$term liabilities would decrease by $ $19\mathrm{.}3$$$19\mathrm{.}3$million$,$ and cash would increase by the same amount. The book value of equity would be unchanged.

C$.$

$$Long$-$term liabilities would increase by $ $19\mathrm{.}3$$$19\mathrm{.}3$million$,$ and cash would increase by the same amount. The book value of equity would be unchanged.

D$.$

$$Long$-$term liabilities would decrease by $ $19\mathrm{.}3$$$19\mathrm{.}3$million$,$ and cash would decrease by the same amount. The book value of equity would change by $ $19\mathrm{.}3$$$19\mathrm{.}3.$