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Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Select the appropriate assumptions that underlie
Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Select the appropriate assumptions that underlie your answer.
a It issues $ million of new common stock.
b It buys new plant and equipment at a cost of $ million.
c It reports a large loss for the year.
d It increases the dividends paid on its common stock. Note that net operating losses are carried forward to future years increasing income and, as a result, cash in the current year. cash. Therefore, statement c will decrease the amount of cash on a company's balance sheet. reduce cash. activities. Statement c would neither increase or decrease cash for taxes paid in a prior year.
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