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Effect on Net Earnings a. Took out a loan for $114,000 . b. Purchased equipment for $104,000 , paying $41,600 cash and financing the balance
Effect on Net Earnings\ a. Took out a loan for
$114,000
.\ b. Purchased equipment for
$104,000
, paying
$41,600
cash and financing the balance with a one-year note payable.\ c. Purchased
$33,000
of inventory from suppliers on account.\ d. Paid
$1,100
for advertising.\ e. Sold inventory for
$38,400
to customers, on account. The goods sold had cost
$12,000
.\ f. Paid
$21,000
on the accounts owing to suppliers.\ g. Paid employee wages of
$4,900
.\ Effect on Cash Flow\
$
\
$
\
$
\
-122
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