Consider the following potential events that might have occurred to Global on December 30, 2019. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Globaľs book value of equity. a. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt. b. A warehouse fire destroyed $4.7 million worth of uninsured inventory. c. Global used $4.9 million in cash and $5.4 million in new long-term debt to purchase a $10.3 million building. d. A large customer owing $3.1 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment. e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 51%. f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices. a. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt. (Select the best choice below.) O A. Long-term liabilities would decrease by $19.2 million, and cash would increase by the same amount. The book value of equity would be unchanged. O B. Long-term liabilities would decrease by $19.2 million, and cash would decrease by the same amount. The book value of equity would change by $19.2. OC. Long-term liabilities would increase by $19.2 million, and cash would increase by the same amount. The book value of equity would be unchanged. O D. Long-term liabilities would decrease by $19.2 million, and cash would decrease by the same amount. The book value of equity would be unchanged. SS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Consider the following potential events that might have occurred to Global on December 30, 2019. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Global's book value of equity. a. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt. b. A warehouse fire destroyed $4.7 million worth of uninsured inventory. c. Global used $4.9 million in cash and $5.4 million in new long-term debt to purchase a $10.3 million building. d. A large customer owing $3.1 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment. e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 51%. f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt. (Select the best choice in picture below.)

Global on December 30, 2019 For each one, indicate which line items in Global's balance sheet
Consider the following potential events that might have occurred
would be affected and by how nmuch. Also indicate the change to Globaľ's book value of equity.
a. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt.
b. A warehouse fire destroyed $4.7 million worth of uninsured inventory.
c. Global used $4.9 million in cash and $5.4 million in new long-term debt to purchase a $10.3 million building.
d. A large customer owing $3.1 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 51%.
f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.
yo
85-
a. Global used $19.2 million of its available cash to repay $19.2 million of its long-term debt. (Select the best choice below.)
O A. Long-term liabilities would decrease by $19.2 million, and cash would increase by the same amount. The book value of equity would be unchanged.
112
O B. Long-term liabilities would decrease by $19.2 million, and cash would decrease by the same amount. The book value of equity would change by $19.2.
O C. Long-term liabilities would increase by $19.2 million, and cash would increase by the same amount. The book value of equity would be unchanged.
ews:
O D. Long-term liabilities would decrease by $19.2 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
ssion

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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