1. If Southwest Airlines borrows $25 million, assets in the form of cash increase $25 million and…
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1. If Southwest Airlines borrows $25 million, assets in the form of cash increase $25 million and liabilities in the form of a note payable increase $25 million. If the company uses the money to buy an airplane, assets in the form of flight equipment increase 25 million and assets in the form of cash decrease $25 million.
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