Fernandez & Co. experienced the following six events during the current year:
1. The sale of common stock to investors for \($5\) million cash.
2. The sale of a new bond issue to investors for \($10\) million cash.
3. The purchase of \($500,000\) of inventory for cash.
4. The purchase of \($700,000\) of equipment using bank financing.
5. The payment of \($100,000\) cash for income taxes associated with last year’s operations.
6. The CFO determined that net income for the most recent month was \($2\) million.
Using the balance sheet equation as illustrated in this chapter, show how each of the above six events would affect the balance sheet of Fernandez & Co.