Surf-The-Net.com had the following events occur during October:

1. Paid $5,800 for utilities.

2. Made cash sales to customers that totaled $89,460. The merchandise had cost Surf-The-Net.com $60,000

3. Paid $28,600 for new equipment.

4. Repaid a $4,900 bank loan.

5. Borrowed $65,000 from local bank.

6. Paid $59,430 to employees for salaries.

7. Paid $11,900 for maintenance and repair.

8. Received $48,600 from investors.

9. Paid $3,750 for supplies that were used.

Required

A. Record transactions 1–9 using the format illustrated in the chapter.

B. What issues must a manager consider before making a financing decision or investing decision?