For each of the following transactions, indicate how (i) net earnings and (ii) cash flows are affected. For each, state whether there will be an increase, a decrease, or no effect, and the amount (if any):

a. Took out a loan for $125,000.

b. Purchased equipment for $100,000, paying $40,000 cash and financing the balance with a one-year note payable.

c. Purchased $35,000 of inventory from suppliers on account.

d. Paid $1,200 for advertising.

e. Sold inventory for $38,200 to customers, on account. The goods sold had cost $11,900.

f. Paid $20,000 on the accounts owing to suppliers.

g. Paid employee wages of $5,000.

h. Received payments of $26,400 from customers on their accounts.

i. Declared and paid dividends of $2,000.

j. Made a loan payment of $2,900 on the loan from transaction (a), of which $2,000 was repayment of loan principal and $900 was interest.

k. Recorded depreciation of $2,000 on the equipment purchased in transaction (b).

l. Recorded $300 in interest owing on the one-year note payable from transaction (b).