Looking forward to next year, if Chester’s current cash amount is $20,132 (000)

Question

Looking forward to next year, if Chester’s current cash amount 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 $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 Chester to the most risk of needing an emergency loan? Select: 1Save Answer Sells $7,000 (000) of long-term assets Purchases assets at a cost of $15,000 (000) Repurchases $10,000 (000) of stock Issues 100 (000) shares of common stock

Explanation / Answer

Purchases assets at a cost of $15,000 (000) RESULTS MORE CASH OUTFLOW.

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