USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS:

Mini Corporation factored, with recourse, $600,000 of accounts receivable with Huskie Financing. The agreement met all three conditions to be considered an outright sale. Huskie advanced 92% of the amount factored and retained the remainder to cover a 3% finance fee and 5% to cover any sales returns/allowances/discounts. The recourse obligation is estimated to be 2.4% of accounts factored.

Determine the effect of this transaction on Minis 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).

1) Determine the effect on Assets

2) Determine the effect on Total Liabilitites

3) Determine the effect on Total Stockholder's Equity

(I saw this same question posted on the website, but all the previous answers appeared to be incorrect.)