1.Suppose that Nike borrows $50 million by issuing new long-term bonds. It places $10 million

of the proceeds in the bank and uses $40 million to buy new machinery. What items of the

balance sheet would change? Would shareholders' equity change?

2. Why is working capital management important?

3. On what situations is the EOQ model for inventory difficult to apply?

4. How can a corporation repurchase its stock?