Corporate actions on cash


Problem:

Changes in the cash account. Indicate the impact of the following corporate actions on cash using the letter I for and increase, D for a decrease, or N when no change occurs.

a. dividend that is paid with funds received from a sale of debt.

b. real estate is purchased and paid for with short-term debt.

c. inventory is bought on credit.

d. a short-term bank loan is repaid.

e. next year's taxes are prepaid.

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Accounting Basics: Corporate actions on cash
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