Q1,The following transactions will have no effect on a company's working capital except:

Select one:

A. Credit purchase of inventory

B. Paid for a purchase of an equipment with a long-term note payable

C. Obtained a long-term loan from a bank

D. Cash purchase of inventory

Q2,In 2019, an ambitiously growing company, Echo Ltd implemented its expansion strategy to market its high-quality wireless earbuds in all major countries in Asia. To ensure that it produces enough quantity of earbuds, Echo has spent a considerable amount of money to build two new factories and establish a seamless distribution system. In 2019, Echo received $1.5 million when it successfully sold 15-year bonds to fund its expansion plan.

Which of the following statements correctly describe the implications of the expansion on Echo's 2019 financial position?

i. The net cash flows from investing activities are likely to be negative

ii. The net cash flows from financing activities are likely to be positive

iii. Profit for the year improves significantly

iv. Gearing ratios are smaller than the previous year

Select one:

A. i, ii and iii

B. i and ii

C. i, ii, iii and iv

D. i, ii and iv