Reference no: EM132310487
Looking forward to next year, if Digby's current cash balance is $20,201 (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?
A.) Liquidates the entire inventory
B.) Sells $10,000 (000) of their long-term assets
C.) Purchases assets at a cost of $25,000 (000)
D.) Pays a $5.00 per share dividend