What will be the effect of each of the following transactions on cash, net working capital, and the current ratio? Assume that the current ratio is above 1.0.
a. The firm borrows $1,000 in a short-term loan from its bank and pays $500 in accounts payable.
b. The firm factors $1,000 in receivables at a 4% discount.
c. The firm issues $1,000 in long-term bonds and uses the proceeds to pay $800 in payables and purchase $200 in marketable securities.