1) When a company pays out more dividends to shareholders in any particular year:

A) Shareholders' equity must decrease

B) Long term debts must increase

C) Long term assets must decrease

D) Short term debts must increase

2) Which one of the following will increase the net working capital of a firm?

A) Making a payment on a long-term debt

B) Obtaining a 3-year loan to purchase inventory

C) Collecting payment from a customer

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