Homework answers / question archive / Sand 5th Avenue borrows $350 million from Trust Bank

Sand 5th Avenue borrows $350 million from Trust Bank

Business

Share With

Sand 5th Avenue borrows $350 million from Trust Bank. It invests $250 million in a new generator and uses the rest, $100 million, to invest in high-yield Certificate of Deposit. What is the impact of this transaction on Sand's balance sheet?

A.Assets increase by $250 million

B.Shareholder equity increases by $100 million

C.Net income increases by $100 million

D.Liabilities increase by $350 million