Corporate actions of cash


Problem:

Indicate the impact of the following corporate actions of cash, whether it would: I = increase, D = decrease, N = 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 issued

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 divident 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 purchased

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Corporate actions of cash
Reference No:- TGS01938896

Now Priced at $25 (50% Discount)

Recommended (94%)

Rated (4.6/5)