For each transaction below, write the net effect on Assets (A), Liabilities (L), Equity (E), Net Income Before Taxes (NIBT), and Cash flows from operating activities (CFO), Cash flows from investing activities (CFI), and Cash flows from financing activities (CFF). (21 pts) Write 0 for no effect and use negative numbers to indicate reductions in accounts or cash outflows. Debt and interest are accounted for using the amortized cost / effective interest methods as in class (i.e., not fair value). The company uses Treasury stock to account for repurchased shares (not constructive retirement). The company has a Warranty Reserve liability on its balance sheet. The company is a retailer that uses US GAAP. A L E NIBT CFO CFI CFF 0 50 -50 -50 0 0 0 Transaction Example: Accrue $50 of rent expense A. Sell inventory (book value = $50) for $75. Customers pay with a gift certificate bought a long time ago B. Record $215 impairment of goodwill C. For PP&E: spend $41 on maintenance and $26 on improvements (all cash) D. Pay $24 to cover warranty claims E. Repurchased and retired debt. Paid $110 and recognized $15 loss F. 25%-owned affiliate had total net income of $88 and paid total cash dividends of $16 (to all owners) G. Paid $18 coupon and recognized $27 of interest expens on a long-term bond H. Some shares originally issued for $65 total are repurchased for $197 total. 1. Sell a plot of land with net book value of $77. Recognize gain of $123 on sale of land J. Collect $82 of Accounts receivable For each transaction below, write the net effect on Assets (A), Liabilities (L), Equity (E), Net Income Before Taxes (NIBT), and Cash flows from operating activities (CFO), Cash flows from investing activities (CFI), and Cash flows from financing activities (CFF). (21 pts) Write 0 for no effect and use negative numbers to indicate reductions in accounts or cash outflows. Debt and interest are accounted for using the amortized cost / effective interest methods as in class (i.e., not fair value). The company uses Treasury stock to account for repurchased shares (not constructive retirement). The company has a Warranty Reserve liability on its balance sheet. The company is a retailer that uses US GAAP. A L E NIBT CFO CFI CFF 0 50 -50 -50 0 0 0 Transaction Example: Accrue $50 of rent expense A. Sell inventory (book value = $50) for $75. Customers pay with a gift certificate bought a long time ago B. Record $215 impairment of goodwill C. For PP&E: spend $41 on maintenance and $26 on improvements (all cash) D. Pay $24 to cover warranty claims E. Repurchased and retired debt. Paid $110 and recognized $15 loss F. 25%-owned affiliate had total net income of $88 and paid total cash dividends of $16 (to all owners) G. Paid $18 coupon and recognized $27 of interest expens on a long-term bond H. Some shares originally issued for $65 total are repurchased for $197 total. 1. Sell a plot of land with net book value of $77. Recognize gain of $123 on sale of land J. Collect $82 of Accounts receivable