USE THE FOLLOWING INFORMATION TO ANSWER ALL 3 PARTS:

Sun Devil Corporation factored, with recourse, $840,000 of accounts receivable with E-Z Financing. The agreement met all three conditions to be considered an outright sale. E-Z advanced 92% of the amount factored and retained the remainder to cover a 3% finance fee and 5% to cover probable sales returns/allowances/discounts. The recourse obligation is estimated to be 1.4% of accounts factored.

Determine the effect of this transaction on Sun Devil's financial position: (Use I for increased; D for decreased; or NE for No Effect. If there is an Effect, state the dollar amount. Indicate the letter first, then the number. Do not space between the letter and number. Do not use commas. For example, if your answer is Decreased by $4,000, enter D4000).

ASSETS	LIABILITIES	EQUITY
BLANK 1	BLANK 2	BLANK 3

Determine the effect on Assets after the accounts receivables have been transferred to E-Z Finance: $__________

Using the information in Question above, determine the effect on Total Liabilities: $___________

Using the information in above, determine the effect on Total Stockholder's Equity: $__________