dmlockhart2000
Jul 7, 2008, 05:55 PM
Indicate how each of the following six different transactions would affect (1) cash and (2) net working capital
1. Paying out a $2 million cash dividend.
2. A customer paying a $2,500 bill resulting from a previous sale.
3. Paying $5ooo previously owed to one of its suppliers.
4. Borrowing $1 million long-term and investing the proceeds in inventory.
5. Borrowing $1 million short-term and investing the proceeds in inventory.
6. Selling $5 million of marketable securities for cash.
1. Paying out a $2 million cash dividend.
2. A customer paying a $2,500 bill resulting from a previous sale.
3. Paying $5ooo previously owed to one of its suppliers.
4. Borrowing $1 million long-term and investing the proceeds in inventory.
5. Borrowing $1 million short-term and investing the proceeds in inventory.
6. Selling $5 million of marketable securities for cash.