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August 1, 2015

Homework Help: Accounting

Posted by pioneer2006 on Thursday, November 8, 2007 at 12:18pm.

Indicate how each of the following six different transactions a company would 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 $5000 previuosly owed to one of its suppliers.
d)Borrowing $1 million long-term and investing the proceeds in inventory.
e)Borrowing $1 million short-term and investing the proceeds in inventory.
f)Selling $5 million of marketable securities for cash.

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