Show the Effect of the Following Transactions on Cash, Net

question 80

Essay

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.

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Definitions:

Discrimination Training

Involves teaching an individual to differentiate between stimuli and respond appropriately, emphasizing the development of discriminatory skills.

Generalization Gradient

A visual representation of the response strength produced by stimuli of varying degrees of similarity to the training stimulus.

Discrimination Graph

A graphical representation used to illustrate the process and outcome of discrimination learning, showing how different stimuli are associated with specific responses.

Inhibitory Generalization Gradient

A graph showing the level of generalization from an inhibitory conditioned stimulus (CS1) to other stimuli.