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    jackie4king's Avatar
    jackie4king Posts: 1, Reputation: 1
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    #1

    Mar 21, 2007, 06:42 PM
    Working Capital Management
    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?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Mar 21, 2007, 07:03 PM
    Quote Originally Posted by jackie4king
    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

    Quote Originally Posted by jackie4king
    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
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