Question: Which items in Table would be affected by the following events? a. There is a rise in interest rates. b. Suppliers demand interest for late

Which items in Table would be affected by the following events?

a. There is a rise in interest rates.

b. Suppliers demand interest for late payment.

c. Dynamic receives an unexpected bill in the third quarter from the Internal Revenue Service for underpayment of taxes in previousyears.

Which items in Table would be affected by the following

First QuarterSecond Quarter Third Quarter Fourth Quarter New borrowing: Bank loan 100.0 16.0 116.0 0.0 92.4 92.4 0.0 0.0 0.0 0.0 0.0 0.0 2 Stretching payables Total Repayments: Bank loan Stretching payables Total Net new borrowing Plus securities sold Less securities bought Total cash raised 0.0 0.0 0.0 116.0 25.0 0.0 41.0 0.0 16.0 16.0 76.4 0.0 0.0 76.4 20.0 92.4 112.4 112.4 0.0 0.0 112.4 80.0 0.0 80.0 80.0 0.0 87.8 167.8 Note: Cumulative borrowing and security sales 100.0 92.4 25.0 80.0 0.0 25.0 0.0 0.0 62.8 Bank lo an Stretching payables Net securities sold Interest payments Bank loan Stretching payables Interest on securities sold 100.0 16.0 25.0 0.0 0.0 0.0 0.0 141.0 141.0 0.8 0.5 3.8 72.6 76.4 2.5 4.6 0.5 7.6 120.0 112.4 2.0 0.0 0.5 2.5 170.3 167.8 14 15 16 Net interest paid Cash required for operations Total cash required TABLE

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