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1. 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 undertie your answer.
A. It issues $9 million of new common stock
b. It buys new plant and equipment at a cost of $3 million
c. It reports a large loss for the year.
d. It increases the dividends paid on its common stock
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Order Paper Now1. Statements (b), (c) and (d) wit increase the amount of cash on a company’s balance sheet Statement (?) will decrease cash through the sale of common stock Seling stock uses cash from financing activities. Note that net operating losses are carried forward to future years increasing home and as a result, cash in the current
11. Statements (b) and (d) will increase the amount of cash on a company’s balance sheet Statement(a) will increase cash through the sale of common stock Selingstoch provides cash througfinancing activities. Net operating losses are carried forward to future years to reduce taxable income in those years, reduces, and the increase cash now but the immediate effect in the current years to reduce cash. Therefore, statement (e) will decrease the amount of cash on a company’s balance sheet
III Statements (b), (c), and will decrease the amount of cash on a company’s balance sheet Statement («) will increase through the use of common stock stock provides cash through financing activities. Note that net operating losses are carried forward to future years to reduce table income in these years, educe the and thus increase cashow-but the immediate 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 cash through the sale of common sering ses cash from financing activities. Net operating losses are carried forward to future years increasing income and, as much in the current year. Therefore, statement (c) will increase the amount of cash on a company’s balance sheet
V. Statements () and (w decrease the amount cash on a company’s balance sheet Statement () will increase through the sale of common se provides through financing activities Statement (c) would neither increase or decrease cash for a part in a prore
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