Question: Please answer 1 & 2 Dropbox Journal Webliogtapby Tech Support Help 1. Which one of the following is a use of cash? I. decrease in
Dropbox Journal Webliogtapby Tech Support Help 1. Which one of the following is a use of cash? I. decrease in notes payable II. increase in inventory III. increase in long-term debt IV. decrease in accounts receivable V. increase in common stock (Points : 3.2) O I and V only O II and V only OI and II only O II, III and IV only OII, III, IV and v 2. Which of the following is NOI a likely financing policy for a rapidly growing business? I. If external financing is necessary, use debt to the point it does not affect financial flexibility IL. Maintain an aggressive leverage ratio to enjoy interest tax shields and inject additional discipline in respect to management incentives III. Borrow funds rather than limit growth, thereby limiting growth only as a last resort IV. Adopt a modest dividend payout policy that enables the company to finance most of its growth internally. (Points : 3.2) 1 only II and III only I, II and II1 II only Ill only 3. Which of the fol ng factors favor the issuance of debt in the financing decision? DOLL
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