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Most risk of needing an emergency loan

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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)

Reference no: EM131082868

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