Problem 11:

Consider each of the following independent events from Basar Co. In each case, state whether the event would increase cash flow, decrease cash flow, or leave cash flow unchanged. If cash flow increased or decreased, state whether that would affect operations, financing, or investing.

a) The company paid creditors $250,000

b) The company bought inventory on credit for $50,000.

c) The company repaid a long-term bank loan: $500,000

d) The company paid a dividend of $50,000 to the common shareholders.