?Blue Ivy Inc.has the following transactions for the month of March: $$\begin{array} { l r }
\text { Issued common stock } & \$ 60,000 \
\text { Purchased land by paying cash } & \$ 100,000 \
\text { Paid expenses } & \$ 25,000 \
\text { Earned cash fees } & \$ 75,000
\end{array}$$ As a cumulative result of these transactions, the liquidity of Blue Ivy Inc.:

Question

?Blue Ivy Inc.has the following transactions for the month of March: $$\begin{array} { l r } 
\text { Issued common stock } & \$ 60,000 \
\text { Purchased land by paying cash } & \$ 100,000 \
\text { Paid expenses } & \$ 25,000 \
\text { Earned cash fees } & \$ 75,000
\end{array}$$ As a cumulative result of these transactions, the liquidity of Blue Ivy Inc.:

Quizplus · Accepted Answer

Liquidity refers to the company's ability to meet its short-term obligations using its most liquid assets. The transactions affecting liquidity are: - Issued common stock (+$60,000, increases liquidity)- Purchased land by paying cash (-$100,000, decreases liquidity)- Paid expenses (-$25,000, decreases liquidity)- Earned cash fees (+$75,000, increases liquidity)The net effect on liquidity is: $60,000 - $100,000 - $25,000 + $75,000 = $10,000 increase in liquidity.

?Blue Ivy Inc As a Cumulative Result of These Transactions, the Liquidity of March