gypsy1952
Aug 10, 2007, 06:14 PM
Paying out a $2 million cash divident has what affect on working capital?
nicespringgirl
Aug 10, 2007, 06:24 PM
Net Working Capital=Assets-Liabilities
When you pay out $2 million cash dividend, you credit cash and debit stockholder's equity-Retained Earnings
Cash is under Assets, so you can see NWC decreased by $2 million.