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    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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    ? 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 ...

    Solution Summary

    The solution explains the effect on cash position of the given transactions.

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