Six different transactions

Reference no: EM13257581

Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cashand (ii) net working capital:

a. Paying out a $2 million cash dividend.

b. A customer paying a $2,500 bill resulting from a previoussale.

c. Paying $5,000 previously 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.

Reference no: EM13257581

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