1.1.Listed below are five transactions that Joma Sports 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.