Consider the Effects of the Independent Transactions, a Through D

Short Answer

Consider the effects of the independent transactions, a through d, on a company's balance sheet, income statement, statement of cash flows, and statement of stockholders' equity.
a. The company purchased inventory on credit.
b. The company paid cash for rent expense.
c. The company collected cash from clients previously billed for goods sold.
d. The company paid cash for inventory purchased in Transaction a.
Complete the table below to explain the effects and financial statement linkages. Use "+" to indicate the account increases and "-" to indicate the account decreases.