At December 31, 2025, Swifty Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred:
Apr. 1: Purchased land for $3,192,200.
May 1: Sold equipment for $450,000, receiving $315,000 cash and the balance on account.
What is the net effect on cash from these transactions?
a) $2,727,200 increase
b) $2,877,200 decrease
c) $3,327,200 decrease
d) $2,877,200 increase
