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[solution]: 1. Changes in the Cash Account Indicate the impact of the following corpo- rate actions on cash,...


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1.        Changes in the Cash Account   Indicate the impact of the following corpo- rate actions on cash, using the letter I for an increase, D for a decrease, or N when no change occurs: a.   A dividend is paid with funds received from a sale of debt. b.   Real estate is purchased and paid for with short-term debt. c.    Inventory is bought on credit. d.   A short-term bank loan is repaid. e.    Next year’s taxes are prepaid. f.    Preferred stock is redeemed. g.   Sales are made on credit. h.   Interest on long-term debt is paid. i.     Payments for previous sales are collected.   j.     The accounts payable balance is reduced. k.   A dividend is paid. l.     Production supplies are purchased and paid for with a short-term note. m. Utility bills are paid. n.   Cash is paid for raw materials purchased for inventory. o.   Marketable securities are sold.    

 


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