Correct Answer: No change

Solution : Answer = No change.

No effect on long-term loan and equity.
When we purchase goods on credit will increase the firm current assets and current liabilities. Purchasing goods on credit increases current assets (inventory) and current liabilities (accounts payable), maintaining the same debt-equity ratio. It doesn't impact long-term loans or equity, as it involves only short-term financing through trade credit.
Hence, the correct option is 3.