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    Understanding the workings of a balance sheet.

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    Suppose that Nike borrows $50 million by issuing new long-term bonds. It places $10 million of the proceeds in the bank and uses $40 million to buy new machinery. What items of the balance sheet would change? Would shareholders' equity change?

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    https://brainmass.com/business/financial-statements/understanding-workings-balance-sheet-3836

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    Cash and equivalents would increase by $10 million. Property, plant ...

    Solution Summary

    Suppose that Nike borrows $50 million by issuing new long-term bonds. It places $10 million of the proceeds in the bank and uses $40 million to buy new machinery. What items of the balance sheet would change? Would shareholders' equity change?

    $2.49

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