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A company's current cash balance is $20,482,000 and cash flows from operations next period remain unchanged. They take ONLY the following actions relating to cash
A company's current cash balance is $20,482,000 and cash flows from operations next period remain unchanged. They take 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 Given this information, which of the following activities will expose them to the most risk of bankruptcy? Purchases assets at a cost of $15,000,000 Sells $5,000,000 of their long-term assets Retires $20,000,000 in long-term debt Liquidates the entire inventory All of the above
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