Question: Looking forward to next year, if Digbys current cash balance is $19,378 (000) and cash flows from operations next period are unchanged from this period,
Looking forward to next year, if Digbys current cash balance is $19,378 (000) and cash flows from operations next period are unchanged from this period, and Digby takes ONLY the following actions relating to cash flows from investing and financing activities:
Looking forward to next year, if Digbys current cash balance is $19,378 (000) and cash flows from operations next period are unchanged from this period, and Digby takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $400 (000) in bonds Retires $10,000 (000) in debt Which of the following activities will expose Digby to the most risk of needing an emergency loan?
| Liquidates the entire inventory | |
| Sells $10,000 (000) of their long-term assets | |
| Purchases assets at a cost of $25,000 (000) | |
| Pays a $5.00 per share dividend |
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