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