How would each of the following six different transactions


1) How would each of the following six different transactions affect Dynamic Mattress (cash) and net working capital?

a) Paying out a $2M cash dividend

b) A customer paying a $2500 bill resulting from a previous sale

c) Paying $5000 previously owed to one of its suppliers

d) Borrowing $1M long term and investing the proceeds in inventory

e) Borrowing $1M short term and investing the proceeds in inventory

Selling $5M of marketable securities for cash

Solution Preview :

Prepared by a verified Expert
Finance Basics: How would each of the following six different transactions
Reference No:- TGS02422700

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)