Question
The questions below present you with a transaction at a hypothetical company. You need to use your understanding of the transaction and your knowledge of
The questions below present you with a transaction at a hypothetical company. You need to use your understanding of the transaction and your knowledge of the balance sheet equation (A = L + S/E) to answer how Total Assets, Total Liabilities and Total Sharholders' Equity would be affected by the transaction. In each blank, you must type either "increase", "decrease", or "no change".
The company receives $100 of cash from selling its own common stock to investors. Total Assets ________ ; Total Liabilities _________; Total Shareholders' Equity__________
Could you also explain the answer?
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