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 underlle your answer. a. It issues 45 mallion of new common stock. b. It buys new plant and equipment at a cost of $3 mition. c. It reports a large loss for the year. d. It increases the dividends poid on its common stock. 1. Statements (b). (c), and ( ) will increase the amount of cosh on a cempany't balance sheet. Statement (a) will decrease cash through the sale of common stock, Seling stock ases cash from financing activities. Note that net operating losses are carned forward to future years increasing incent and, as a result, cash in the current year. 11. Statements (b) and (d) will increase the amount of cash on a companys batance sheet. Ftatement (o) will increase cash through the sale of common stock. Seling atock provides cash through financing octivities. Net operating losses are carried forward to future years to reduce taxable income in these years, reduce taxes, and thes increase cash How - but the immediate effect in the current year is to reduce cash. Therefore, statement (c) will decrease the anount of cash on a eampanys bolance sheet. 11. Statements (b), (c), and (d) wid decrease the amount of cash on a companys balance sheet. statement (a) wat increase cash through the sale of common stock. Sollima stock provides casc through financing activities, Note that net operating losses are camed forward to future years to reduce taxable income in these yearm, reduce taxes, and thes increase cash fiow - but the immediste effect in the current year is to reduce cash. IV. Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) will decrease cosh throvgh the sale of common stock. Seling stock ufes cash from financhg activities, Net opereting losses are camped forward to future years increasing income and, as a result, caeh in the currant year. Therefore, statement (c) will increase the amount of cash on a compsny's belance sheet. V. Statements (b) and (d) will decrease the amount of cash on a compary's balance sheet. statement (a) will increase cash through the sale of common stock, Selling stock: provides cash throagh financing activities. Statement (c) would nesther increase or decrease cash for taves paid in a prior vear