Listed below are six transactions that Dynamic Mattress might make. Indicate how each transaction would affect ( a ) cash and ( b ) working capital.

The transactions are i. Pay out an extra $10 million cash dividend.

ii. Receive $2,500 from a customer who pays a bill resulting from a previous sale.

iii. Pay $50,000 previously owed to one of its suppliers.

iv. Borrow $10 million long term and invest the proceeds in inventory.

v. Borrow $10 million short term and invest the proceeds in inventory.

vi. Sell $5 million of marketable securities for cash.

AppendixLO1