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?

1-this transaction will not be affecting the working capital position in any way, as cash(current asset) as well as dividend payable(current liability) reducing in the same proportion.
2-This transaction is also not affecting the working capital position as it involves just the conversion of bills receivable into cash, ultimately keeping current assets same as before.
3-similar to the above one as it involves cash outgo for paying towards trade creditors.
4-In this case it involves long term borrowing hence increase the net working capital by $1 million.because this proceeds are blocked in inventory(a part of current assets).
5- No change in NWC(net working capital), as it involves short term borrwings(current liability) and inventory.
6-No change