Reference no: EM131082868
Looking forward to next year, if Digby’s current cash balance is $17,478 (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 $200 (000) of long-term debt
Pays $40 (000) in dividends
Which of the following activities will expose Digby to the most risk of needing an emergency loan?
Sells $5,000 (000) of their Long-term assets
Retires $20,000 (000) in long-term debt
Liquidates the entire inventory
Purchases assets at a cost of $15,000 (000)
Meets or exceeds criterion at a high level of competence
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