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Changes in cash account

Walk me through how to solve this 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

Walk me through how to solve this 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
N = no change occurs
(Cash proceeds received from sale of debt used to pay Dividend.)

B. real estate is purchased and paid for with short term debt
N = no change occurs
(Cash proceeds from short term debt used to pay for the purchase of real estate)

C. inventory is bought on credit ...

Solution Summary

The solution indicates whether cash would increase, decrease or remain the same for the 15 corporate actions mentioned in the question

$2.19