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For the following transactions complete the table provided for Wildcat Company. 1. Beavs purchases common stock of Wildcat. 2. Beavs borrows from Wildcat by

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For the following transactions complete the table provided for Wildcat Company. 1. Beavs purchases common stock of Wildcat. 2. Beavs borrows from Wildcat by signing a note. 3. Beavs performs services for Wildcat for $5,000 cash. 4. Beavs pays interest to Wildcat on borrowing. 5. Beavs buys inventory for $6,000 cash. 6. Beavs pays $4,500 cash for the current month. Instructions for table: For each transaction indicate whether the transaction increases, decreases, or has no effect (NE) on assets, liabilities, and/or owners' equity; identify effects on cash flows (category), net income or retained earnings. Example transaction: Company sells common stock for $200,000 cash. Effects on Balance Sheet Transaction Effect on Cash Flow A = L + SE Effect on Effect on Net Retained Earnings Income Example (See above) Financing inflow $200,000 No Effect $200,000 No Effect No Effect = + frem Sales

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Answer To complete the table for Wildcat Company lets examine each of the six transactions and determine their effects on the balance sheet assets lia... blur-text-image

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