Wexmard Co. ("Wexmard") approaches year-end (Year 4) with several decisions to make regarding a major supplier change, a potential issuance of new short-term debt, and a new bank loan needed for funding future equipment purchases. The company already has various outstanding short-term and long-term debt and the treasurer is looking to better understand the impact these decisions will have on working capital going into Year 5.

Using the exhibits, for each activity identified in column A in the Debt Activity table, choose the resulting impact on Year 5 cash and on working capital in column B. In the Decisions table, for each decision identified in column A, identify the best course of action the company should take in column B.