Indicate the impact of the following corporate actions on cash, using the letter
ID: 2683302 • Letter: I
Question
Indicate the impact of the following corporate actions on cash, using the letter I for an increase, D for a 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 pre-paid
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. Production 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. A dividend that is paid with funds received from a sale of debt -N (No change) b. B. real estate is purchased and paid for with short-term debt -N (No change) c. C. inventory is bought on credit.- N (No change as its a credit tran.