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XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in
XYZ borrows $350 million from Bank of USA. It invests $250 million in a new generator and uses the rest, $100 million, to invest in high-yield Certificate of Deposit. What is the impact of this transaction on XYZ's balance sheet?
A. | Liabilities increase by $350 million | |
B. | Net income increases by $100 million | |
C. | Assets increase by $250 million | |
D. | Shareholder equity increases by $100 million |
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