1. Sources and uses of cash (S30.2) State whether each of the following events is a source...
Question:
1. Sources and uses of cash (S30.2) State whether each of the following events is a source or a use of cash, or neither.
a. An automobile manufacturer increases production in response to a forecasted increase in demand. Unfortunately, the demand does not increase.
b. Competition forces the firm to give customers more time to pay for their purchases.
c. Rising commodity prices increase the value of raw material inventories by 20%.
d. The firm sells a parcel of land for $100,000. The land was purchased five years earlier for
$200,000.
e. The firm repurchases its own common stock.
f. The firm doubles its quarterly dividend.
g. The firm issues $1 million of long-term debt and uses the proceeds to repay a short-term bank loan.
Step by Step Answer:
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans