BALANCE SHEET Which of the following actions are most likely to directly increase cash as shown on a firm’s balance sheet? Explain and state the assumptions that underlie your answer.

a. It issues $2 million of new common stock.

b. It buys new plant and equipment at a cost of $3 million.

c. It reports a large loss for the year.

d. It increases the dividends paid on its common stock.

AppendixLO1