Explain and state the assumptions that underlie your answer. a. It issues $4 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

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
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Which of the following actions are most likely to directly increase cash as shown on a firms balance sheet? Explain and state the assumptions that underlie your answer.

a. It issues $4 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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