During the year, a business borrowed $850,000 and used $750,000 of those funds to invest in new long-term operating assets. How do these actions change its financial condition?
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Condensed Balance Sheet |
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Cash |
Operating liabilities |
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Receivables |
Interest-bearing liabilities |
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Inventory |
Owners’ invested capital |
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PP&E, net |
Owners’ retained earnings |
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Assets |
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Liabilities and Owners’ Equity |