1. Other things held constant, which of the following will cause an increase in net working capital?
Cash is used to buy marketable securities.
A cash dividend is declared and paid.
Merchandise is sold at a profit, but the sale is on credit.
Missing inventory is written off against retained earnings.
2. A bond will pay principal of $1,000 upon maturity in 10 years from now, plus it will pay $60 every six months, including the date of maturity and starting six months from now. What price would you expect to pay for the bond if comparable bonds yield 8 percent?
A. $1,272 C. $815 B. $1,162 D. $456