Explain briefly, how each of the following transactions would affect a companys balance sheet a. Purchase of

Question:

Explain briefly, how each of the following transactions would affect a company’s balance sheet

a. Purchase of a new $80 million building, financed 40% with cash and 60% with a bank loan.

b. Purchase of a new building for $60 million cash.

c. A $ 40.000 payment to trade creditors.

d. A firm’s repurchase of 10.000 shares of its own stock at a price of $24 per share.

e. Sale of merchandise for $80.000 in cash.

i. Sale of merchandise for $120.000 on credits.

ii. Dividend payment to shareholders of $50.000.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...