Question
Looking forward to next year, if Chesters current cash balance is $20,132 (000) and cash flows from operations next period are unchanged from this period,
Looking forward to next year, if Chesters current cash balance is $20,132 (000) and cash flows from operations next period are unchanged from this period, and Chester 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 Chester to the most risk of needing an emergency loan?
Select: 1Save Answer
1. Purchases assets at a cost of $25,000 (000)
2. Liquidates the entire inventory
3. Sells $10,000 (000) of their long-term assets
4. Pays a $5.00 per share dividend
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