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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.
a. The firm borrows $1,000 short term and pays $500 in accounts payable.
b. The firm factors $1,000 in receivables at a 5% discount.
c. The firm issues $1,000 in long-term bonds, using the proceeds to pay $800 in payables and purchase $200 in marketable securities.
Ferns
Non-flowering vascular plants that reproduce via spores and are characterized by their fronded leaves.
Gymnosperms
A group of seed-producing plants that includes conifers, cycads, Ginkgo, and gnetophytes, distinguished by their naked seeds not enclosed in an ovary.
Rhizoids
Hair-like structures on the surface of plants, fungi, and algae that absorb water and nutrients and anchor the organism to the substrate.
Mosses
Small, non-vascular plants that typically form dense green clumps or mats, often in moist or shady locations.
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