Ch 18 Problems 1,2,3,5 Pages 604-605

Ch 18 Problems 1,2,3,5 Pages 604-605 - XIZHOU problem1...

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XI ZHOU problem 1 I=increase D=decrease N=nochange a. a dividend is paid with funds received from a sale of debt D b. real estate is purchased and paid for with short-term debt. D c. inventory is bought on credit. N d. a short-term bank loan is repaid. D e. next year's taxes are prepaid. D f. preferred stock is redeemed. I g. sales are made on credit. N h. interest on long-term debt is paid. D i. payments for previous sales are collected. N j. the accounts payable balance is reduced. N k. a dividend is paid. N l. production supplies are purchased and paid for with a shoe-term note. I m. utility bills are paid. D n. cash is paid for raw materials purchased for inventory. D o. marketable securities are sold.  I Problem 2 book net worth $10,380  long-term debt $7,500  net warking capital $2,105  fixed assets $15,190  net working capital+fixed assets=long-term debt+equity $2,105+$15,190=$7,500+equity
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This note was uploaded on 04/27/2010 for the course BUSINESS 231 taught by Professor Steven during the Spring '10 term at 카이스트, 한국과학기술원.

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Ch 18 Problems 1,2,3,5 Pages 604-605 - XIZHOU problem1...

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