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

122 Effect on Net Earnings a. Took out a loan for $114,000. Effect on Cash Flow $ $ 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