Effect on cash position
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Indicate whether the following corporate actions Increase, Decrease, or cause no change to the cash position.
? Cash is paid for raw materials purchased for inventory
? A dividend is paid
? Merchandise is sold on Credit
? Common Stock is issued
? Raw material is purchased for Inventory on Credit
? A piece of machinery is purchased and paid for with long term debt
? Payments for previous sales are collected
? Accumulated depreciation is increased
? Merchandise is sold for cash
? Payment is made for a previous purchase
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Solution Summary
The solution explains the effect on cash position of the given transactions.
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? Cash is paid for raw materials purchased for inventory
Since cash is paid, cash will decrease
? A dividend is paid
Dividend is paid in cash, so cash will decrease
? Merchandise is sold on Credit
Since this is a sale oncredit, there is ...
Purchase this Solution
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