For each transaction below, write the net effect on Current Assets (CA), Total Assets, Net Income Before Taxes (NI pretax), Cash flows from operating activities (CFO), and Cash flows from investing activities (CFI).

• Write only the effect for the current period.
• Assume the company is a merchandising firm.
• If the net effect is negative, include a negative sign. If no effect, write 0.
• For CFO and CFI, positive net inflows are positive, net cash outflows are negative.
• For classifying interest expense, assume U.S. GAAP conventions.

Transaction	CA	Total Assets	NI (pretax)	CFO	CFI
Pay $25 to improve a piece of machinery	Answer	Answer	Answer	Answer	Answer
Impair a plot of land from $75 down to $20	Answer	Answer	Answer	Answer	Answer
Pay $82 for delivery truck ($80 price + $2 delivery)	Answer	Answer	Answer	Answer	Answer
Recognize $25 of warranty expense (Company has Warranty Reserve liability)	Answer	Answer	Answer	Answer	Answer
Sell a store location with net book value of $92 for $110 in cash