Indicate the impact of the following corporate actions on cash, using teh letter
ID: 2664497 • Letter: I
Question
Indicate the impact of the following corporate actions on cash, using teh letter I for increase, D for decrease, or N when no change occurs.(A) a dividend 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.
(f) preferred stock is redeemed.
(g) sales are made on credit.
(h) interest on long term debt is paid.
(i) payments for previous sales are collected.
(j) the accounts payable balance is reduced.
(k) a dividend is paid.
(l) product supplies are purchased and paid for with a short term note.
(m) utility bills are paid.
(n) cash is paid for raw materials purchased for inventory.
(o) marketable securities are sold.
Explanation / Answer
a. N b.N c. N d. D e. D f. D g.N h.D i. I J.D K. D l.N m.D n.D o.I