The following are operating transactions that occur during the current year. Analyze each transaction and explain if the transaction will increase, decrease, or have no effect on the working capital.

a. Company purchased inventory on account, $5800; terms 2/10,n/30

b. Company borrowed $55,000 in a long term note.

c. Old equipment with a book value of $2200 is sold for $1325

d. marketable securities are sold at a gain of $4800

e. Company paid $4200 for insurance covering one year from the date of purchase