How can borrowing $1million long term and short term and investing the proceeds in inventory affect cash and networking capital.

How can selling $5 million of marketable securities for cash affect cash and networking capital.

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Originally Posted by Leslie Brewer

how can selling $5 million of marketable securities for cash affect cash and networking captial.

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Well, if you sell an asset for $5 million for cash, then your cash goes up by $5 million.

Working capital is Current Assets – Current Liabilities, and since both cash and marketable securities are current assets, it wouldn’t change your working capital.