Balance sheet Which of the following actions are most likely to directly increase cash as shown on a firms balance sheet Explain and state the assumptions that underlie your answer It issues $3 million of new common stock It buys new plant and equipment at a cost of $3 million It reports a large loss for the year It increases the dividends paid on its common stock Statements (b) and (d) will increase the amount of cash on a company's balance sheet Statement (a) will decrease cash through the sale of common stock Selling stock provides cash through financing activities On one hand, Statement (c) would decrease cash however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year Statements (b) and (d) will increase the amount of cash on a company's balance sheet Statement (a) will increase cash through the sale of common stock Selling stock provides cash through financing activities On one hand, Statement (c) would decrease cash however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year Statements (b) and (d) will decrease the amount of cash on a company's balance sheet Statement (a) will increase cash through the sale of common stock Selling stock provides cash through financing activities On one hand, Statement (c) would decrease cash however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year Statements (b) and (d) will decrease the amount of cash on a company's balance sheet Statement (a) will decrease cash through the sale of common stock Selling stock provides cash through financing activities On one hand, Statement (c) would decrease cash however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year Statements(b)and(d)willdecreasetheamountofcashonacompany'sbalancesheet Statement(a)willincreasecashthroughthesaleofcommonstock Sellingstockprovidescashthroughfinancingactivities Statement(c)wouldneitherincreaseordecreasecashfortaxespaidinaprioryear pick one

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Balance sheet Which of the following actions are most likely to directly increase cash as shown on a firms balance sheet? Explain and state the

Balance sheet

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

It issues $3 million of new common stock.
It buys new plant and equipment at a cost of $3 million.
It reports a large loss for the year.
It increases the dividends paid on its common stock.
Statements (b) and (d) will increase the amount of cash on a company's balance sheet. Statement (a) will decrease cash through the sale of common stock. Selling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year.
Statements (b) and (d) will increase the amount of cash on a company's balance sheet. Statement (a) will increase cash through the sale of common stock. Selling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year.
Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) will increase cash through the sale of common stock. Selling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year.
Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) will decrease cash through the sale of common stock. Selling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year.
Statements(b)and(d)willdecreasetheamountofcashonacompany'sbalancesheet.Statement(a)willincreasecashthroughthesaleofcommonstock.Sellingstockprovidescashthroughfinancingactivities.Statement(c)wouldneitherincreaseordecreasecashfortaxespaidinaprioryear.