Events affecting the firm balance sheet

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Sources and Uses of Cash. State how each of the following events would affect the firm's balance sheet. State whether each change is a source or use of cash.

a. An automobile manufacturer increases production in response to a forecast increase in demand. Unfortunately, the demand does not increase.

b. Competition forces the firm to give customers more time to pay for their purchases.

c. The firm sells a parcel of land for $100,000. The land was purchased 5 years earlier for $200,000.

d. The firm repurchases its own common stock.

e. The firm pays its quarterly dividend.

f. The firm issues $1 million of long-term debt and uses the proceeds to repay a short-term bank loan.

Reference no: EM13136583

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