Other things held constant-increase in net working capital

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Reference no: EM131346276

1. Other things held constant, which of the following will cause an increase in net working capital?

Cash is used to buy marketable securities.

A cash dividend is declared and paid.

Merchandise is sold at a profit, but the sale is on credit.

Missing inventory is written off against retained earnings.

2. A bond will pay principal of $1,000 upon maturity in 10 years from now, plus it will pay $60 every six months, including the date of maturity and starting six months from now. What price would you expect to pay for the bond if comparable bonds yield 8 percent?

A. $1,272 C. $815 B. $1,162 D. $456

Reference no: EM131346276

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