How would Dynamic Mattress paying $5,000.00 previously owed to one of its supplier affect (1) cash and (2) net working capital?

How would borrowing $1 million long-term and investing the proceeds in inventory affect (1) cash and (2) net working capital?

How would Dynamic Mattress paying $5,000.00 previously owed to one of its supplier affect (1) cash and (2) net working capital?

1) It would decrease it
2) No change


How would borrowing $1 million long-term and investing the proceeds in inventory affect (1) cash and (2) net working capital?

1) It would increase it
2) It would increase it