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    taiciad's Avatar
    taiciad Posts: 2, Reputation: 1
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    #1

    Dec 15, 2007, 11:37 AM
    Working Capital Management
    Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (I) cash and (ii) net working capital:

    a. Paying out a $2 million cash dividend.
    b. A customer paying a $2,500 bill resulting from a previous sale.
    c. Paying $5,000 previously owed to one of its suppliers.
    e. Borrowing $1 million long-term and investing the proceeds in inventory.
    f. Selling $5 million of marketable securities for cash.
    horvatma's Avatar
    horvatma Posts: 5, Reputation: 1
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    #2

    Dec 17, 2007, 01:44 PM
    a. Paying out a $2 million cash dividend. Decrease cash, decrease net working cap
    b. A customer paying a $2,500 bill resulting from a previous sale. Increase cash, increase net working cap
    c. Paying $5,000 previously owed to one of its suppliers. Decrease cash, decrease net working cap decrease cash, no change in net working cap
    e. Borrowing $1 million long-term and investing the proceeds in inventory. Increase cash, increase net working cap
    f. Selling $5 million of marketable securities for cash. Increase cash, increase net working cap
    horvatma's Avatar
    horvatma Posts: 5, Reputation: 1
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    #3

    Dec 17, 2007, 01:48 PM
    a. Decrease cash, decrease net working cap
    b. increase cash, increase net working cap
    c. decrease cash, no change in net working cap
    e. increase cash, increase net working cap
    f. increase cash, increase net working cap
    horvatma's Avatar
    horvatma Posts: 5, Reputation: 1
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    #4

    Dec 17, 2007, 01:54 PM
    Quote Originally Posted by taiciad
    Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capital:

    a. Paying out a $2 million cash dividend.
    b. A customer paying a $2,500 bill resulting from a previous sale.
    c. Paying $5,000 previously owed to one of its suppliers.
    e. Borrowing $1 million long-term and investing the proceeds in inventory.
    f. Selling $5 million of marketable securities for cash.
    a. decrease cash, decrease net working cap
    b. increase cash, increase net working cap
    c. decrease cash, no change in net working cap
    e. increase cash, increase net working cap
    f. increase cash, increase net working cap
    GBLAIR05's Avatar
    GBLAIR05 Posts: 6, Reputation: 1
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    #5

    Sep 27, 2008, 07:17 PM
    Comment on horvatma's post
    Accurate
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