Changes in Working Capital Transactions Analysis

What are the impacts of various financial transactions on current assets, current liabilities, and working capital?

Let's analyze the changes in working capital based on the given list of financial transactions.

Changes in Working Capital for Different Transactions

Below is a detailed analysis of the impact of each financial transaction on current assets, current liabilities, and working capital:

Sold capital stock for cash: Current assets and working capital both increased, while current liabilities remained unchanged.

Purchased a building for cash: Current assets remained unchanged, current liabilities decreased, and working capital remained unchanged.

Paid current liabilities with cash: Current assets and working capital both increased, while current liabilities decreased.

Issued long-term bonds payable for cash: Current assets decreased, while current liabilities remained unchanged and working capital increased.

Purchased inventory on account: There was no change in current assets, current liabilities, or working capital.

Purchased a building site by issuing long-term bonds: Current assets and working capital both increased, while current liabilities remained unchanged.

Sold equipment for a cash amount equal to book value: Current assets decreased, current liabilities increased, and working capital remained unchanged.

Sold treasury stock for cash: Current assets remained unchanged, current liabilities decreased, and working capital increased.

A long-term note matures next year is reported as a current payable at this year-end: Current assets remained unchanged, current liabilities increased, and working capital remained unchanged.