Expose digby to the most risk of needing emergency loan

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Reference no: EM131498966

Looking forward to next year, if Digby’s current cash balance is $17,334 (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?

Save Answer Pays a $5.00 per share dividend

Liquidates the entire inventory

Sells $10,000 (000) of their long-term assets

Purchases assets at a cost of $25,000 (000)

Reference no: EM131498966

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