a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.) O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8. O B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.) O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8. O B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 7P
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Question
![a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.)
O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8.
B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
D. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F468cd9f6-2862-4687-8863-d44495af8079%2F1dcc8dd2-399a-4c0e-806c-b3f7a3c6d1cc%2Fraan7qi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. Global used $19.8 million of its available cash to repay $19.8 million of its long-term debt. (Select the best choice below.)
O A. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would change by $19.8.
B. Long-term liabilities would decrease by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
C. Long-term liabilities would increase by $19.8 million, and cash would increase by the same amount. The book value of equity would be unchanged.
D. Long-term liabilities would decrease by $19.8 million, and cash would decrease by the same amount. The book value of equity would be unchanged.
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