On January 1, 2020, Steinem Corporation established a special purpose entity to buy $1 million of accounts receivable from Steinem. Investors have invested in the special purpose entity to benefit from the return on assets and certain tax advantages. The special purpose entity has used the cash invested by the investors to buy the $1 million of accounts receivable from Steinem.

a. Has Steinems liquidity improved as a result of this transaction? Improved or deteriorated

b. Will Steinems SFP show increased debt or equity as a result of this transaction? Shown or not shown

c. What type of transaction is this ? Off or on balancing sheet

d. From the perspective of an investor, what is the related risk? appear better or worse