How does selling $5 million of marketable securities for cash affect cash and net working capital?

Selling $5 million of marketable securities for cash will affect both cash and net working capital. Let's break down the effects:

1. Cash: When you sell marketable securities, you receive cash in return. Therefore, your cash balance will increase by $5 million.

2. Net Working Capital: Net working capital represents the difference between current assets (such as cash, marketable securities, inventory, etc.) and current liabilities (such as accounts payable, short-term debt, etc.). Since marketable securities are considered a current asset, selling them for cash will decrease the value of current assets. As a result, net working capital will decrease by $5 million.

To summarize, selling $5 million of marketable securities for cash will increase your cash balance by $5 million and decrease your net working capital by the same amount.