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    Impact on Cash Balance

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    1. Balance sheet - Which of the following actions are most likely to directly increase cash shown on a firm's balance sheet? Explain and state the assumptions that underlie your answer.

    a. It issues $2 million of new common stock.
    b. It buys new plant equipment at a cost of $3million.
    c. It reports a large loss for the year.
    d. It increases the dividends paid on its common stock.

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    https://brainmass.com/business/financial-statements/impact-cash-balance-96085

    Solution Preview

    1. Balance sheet - Which of the following actions are most likely to directly increase cash shown on a firm's balance sheet? Explain and state the assumptions that underlie your answer.
    a. It issues $2 million of new common stock.

    When a new common stock ...

    Solution Summary

    The solution explains which actions would result in an increase in cash balance.

    $2.19

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