Back to Assignment Attempts Keep the Highest: 0/1 9. Problem 3.09 (Balance Sheet) eBook Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Select the appropriate assumptions that underlle your answer a. It issues $4 million of new common stock b. It buys new plant and equipment at a cost of $3 million. c. It reports a large loss for the year d. It increases the dividends paid on its common stock L Statements (b) and (d) will increase the amount of cash on a company's balance sheet. Statement (a) will decrease cash through the sale of common stock. Selling stock uses cash from financing activities On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (e) would increase cash, the firm recelves a tax refund for taxes paid in a prior year 1. Statements (b) and (d) will increase the amount of cash on a company's balance sheet, Statement (a) will increase cash through the sale of common stock. Seling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm recelves a tax refund for taxes paid in a prior year 11. Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) will increase cash through the sale of common stock. Selling stock provides cash through financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm recelves a tax refund for taxes paid in a prior year. IV. Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) will decrease cash through the sale of common stock. Selling stock uses cash from financing activities. On one hand, Statement (c) would decrease cash; however, it is also possible that Statement (c) would increase cash, if the firm receives a tax refund for taxes paid in a prior year V. Statements (b) and (d) will decrease the amount of cash on a company's balance sheet. Statement (a) wil increase cash through the sale of common stock, Selling stock provides cash through financing activities. Statement (c) would neither increase or decrease cash for taxes paid in a prior year. Seect Orede Naw Save&Continse Continue without savings g88 esc $ % & 2 4 m Back to Assigment Attempts Keep the Highest: /1 13. Problem 3.13 (Statement of Cash Flows) eBook You have just been hired as a financial analyst for Barrington 1Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $700,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.5 milion of machinery that was needed for a new project. You have justs spoken to the firm's accountants and leamed that annual depreciation expense for the yeer is 5460,000, however, the purchase price for the machinery represents additions to property, plant, and equioment before depreciation. Finally, you have determined that the only financing done by the fiem was to issue long-term debt of $1 million at a 5% interest rate. What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, milion should be entered as 5,000,000. Round your answer to the nearest dolar, if necessary rade H New Save &Continue Continue withot saving A-4 4 F esc % & 4 5 7 R T Y U