1) Which of the following will necessarily cause an increase in net working capital?
a) Increasing cash balances.
b) Paying down current liabilities.
c) Issuing shares of stock to purchase fixed assets.
d) Increasing long-term debt to purchase more inventory.
2) A firm has total revenue of $1,000, total expenses of $500, an average tax rate of 30% and a marginal tax rate of 35%. What is the firm's net income?
Please show all steps.