2017DECQ2 Eview Cinemas Co

Hi John,

hope you are well,

my question is related to 2017DECQ2, Eview Cinemas Co, the question states that “Additional investment in current assets is expected to earn a 7% pre-tax return “, I understand the calculation but I am wondering why the transaction does not have an impact on BS apart from P&L?

the answer states that it only has an impact on P&L, and not on BS. I thought the entry for the transaction would be:
dr. cash 50.5 (=+Current Asset on BS) 51
cr. profit (impact on P&L) 51

but apparently, the answer seems that the transaction only shows the credit effect but missing the debit effect?

Thanks in advance!