Indicate how each of the following six different

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

1. Paying out a $2 million cash dividend.

a. Cash will

b. Net Working Capital will

2. A customer paying a $2,500 bill resulting from a previous sale.

3. Paying $5,000 previously owed to one of its suppliers.

4. Borrowing $1 million long-term and investing the proceeds in inventory.

5. Borrowing $1 million short-term and investing the proceeds in inventory.

6. Selling $5 million of marketable securities for cash.

Reference no: EM13357439

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