1.1. 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.

1.2. State how each of the following events would affect the firm's balance sheet. State whether each change is a source or use of cash.

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.

P. S. (I need a bit simpler answers) with your own words please