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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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    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 ...

    Solution Summary

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

    $2.49

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