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Dynamic Mattress and working capital management

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Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capital:

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This explain the concept and impact on working capital with the help of different examples

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Working Capital Management - indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capital:

a) paying out a $2 million cash dividend
It will reduce the cash balance, as it is cash outflow
It will have no effect on net working capital as the current liability (dividend payable) and current assets (cash) both will go down

b) a ...

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