Question 2 2 marks Transactions: 1. A Company pays out $2 million Cash Dividend; 2. A customer pays a $2,500 bill resulting from a previous sale; Indicate how the given transactions (1 and 2) would effect (a) Cash; (b) Working Capital: (c) Current Ratio (d) Quick Ratio Question 3 Compute Interest Coverage Ratio if: Net Account Receivable = $100,000 Income Taxes = $30,000 Interest Expense = $8,000 1 mark Question 4 1 mark State how each of the following events would affect the firm's Balance Sheet State whether each change is a source or use of Cash and whether it is a Source or Use of funds. (a) An automobile manufacturer increases production in response to a forecasted increase in demand. Unfortunately, the demand does not increase. (b) Competition forces the firm to give customers more time to pay for their purchases