1. A company purchases a new $10 million building, financed half with cash and half with...
1. A company purchases a new $10 million building, financed half with cash and half with a bank loan. How would this transaction affect the company's balance sheet? Circle the answer.
a. Net plant and equipment rises $10 million; cash falls $10 million; bank debt rises $5 million.
b. Net plant and equipment rises $5 million; cash falls $10 million; bank debt rises $5 million.
c. Net plant and equipment rises $5 million; cash falls $5 million; bank debt rises $5 million.
d. Net plant and equipment rises $10 million; cash falls $5 million; bank debt rises $5 million.
Please explain and show any math involved.
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1. A company purchases a new $10 million building, financed half
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