Impact on Cash

Property is purchased and paid for with long-term debt...

• Increases cash

• Decreases cash

• Makes no change on cash

Inventory is bought on credit...

• Increases cash

• Decreases cash

• Makes no change on cash

A dividend is paid with funds received from a sale of debt...

• Increases cash

• Decreases cash

• Makes no change on cash

A short-term bank loan is repaid.

• Increases cash

• Decreases cash

• Makes no change on cash

Next year's taxes are prepaid.

• Increases cash

• Decreases cash

• Makes no change on cash

Sales are made on credit

• Increases cash

• Decreases cash

• Makes no change on cash

Interest on long-term debt is paid

• Increases cash

• Decreases cash

• Makes no change on cash

Payments for previous sales are collected

• Increases cash

• Decreases cash

• Makes no change on cash

The trade payables balance is reduced

• Increases cash

• Decreases cash

• Makes no change on cash

A dividend is paid.

• Increases cash

• Decreases cash

• Makes no change on cash