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Show the effect of the following transactions on cash, net working capital, and the current ratio.Assume that the current ratio exceeds 1.0 to begin.
The firm borrows $1,000 short-term and pays $500 in accounts payable.
The firm factors $1,000 in receivables at a 5% discount.
The firm issues $1,000 in long-term bonds, using the proceeds to pay $800 in payables and purchase $200 in marketable securities.
Unionization
The process by which workers join together to form a union, a collective organization to negotiate higher wages, better working conditions, and other benefits with their employers.
Industrial Categories
The classification of industries or businesses based on common sectors, activities, or products, used for economic analysis and policy making.
Significant Wage Increases
Notable uplifts in employee pay rates, often occurring in response to factors like inflation, productivity improvements, or labor market dynamics.
Right-To-Work Laws
Legislation that prohibits agreements between labor unions and employers that make union membership or payment of union dues a condition of employment.
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