M$9-7$

$$ LO$9-5$

Analyzing the Impact of Transactions on Working Capital

Ospry Company has working capital in the amount of $$1,240,000.$ For each of the following transactions, determine whether working capital will increase, decrease, or remain the same.

a$.$ Paid accounts payable in the amount of $$50,000.$

b$.$ Recorded accrued salaries in the amount of $$100,000.$

c$.$ Borrowed $$250,000$ from a local bank, to be repaid in $90$ days.

d$.$ Purchased $$20,000$ of new inventory on credit.