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Consider the following potential events that might have occurred to Global Conglomerate on December 30, 2009. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Global's book value of equity.
a. Global used $20 million of its available cash to repay $20 million of its long-term debt.
b. A warehouse fire destroyed $5 million worth of uninsured inventory.
c. Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.
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