Answered>Order 1843

Looking forward to next year, if Digby’s current cash amount 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 $2,000 (000) of long-term debt

Pays $4,000 (000) in dividends

Retires $10,000 (000) in debt

Which of the following activities will expose Digby to the most risk of needing an emergency loan?

Select: 1

Repurchases $10,000 (000) of stock

Sells $7,000 (000) of long-term assets

Purchases assets at a cost of $15,000 (000)

Issues 100 (000) shares of common stock