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Home > Business & Careers > Finance   »   working capital

 
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Old Sep 19, 2007, 10:59 AM
ekp131
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working capital

Working Capital Management. Indicate how each of the following six different transactions would affect (i) cash and (ii) net working capital
a. Paying out a $2 million cash dividend.
b. customer paying a $2,500 bill resulting from a previous sale.
c. Paying $5,000 previously owed to one of its suppliers
d. Borrowing $1 million long-term and investing the proceeds in inventory.
e. Borrowing $1 million short-term and investing the proceeds in inventory.
f. Selling $5 million of marketable securities for cash.

ok so they all would affect the cash flow by either increasing or decreasing it but how do they affect the net working capital. The working capital is total current assets less total current liabilities right??

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