js.cfm?studentKey-15558528gsimid C595598simid udentexam/boardquery/boardquery_js

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js.cfm?studentKey-15558528gsimid C595598simid udentexam/boardquery/boardquery_js.cfm?studentKey 15558528gsimid-C595598 simid COMPXm comp-XoM Exaim INUER Points: 10 ©2006 Capsim Management Simulations, Inc. Looking forward to next year, if Chester's current cash amount is $19,378 (000) and cash flows from operations next period are unchanged from this period and Chester takes ONLY the following actjns relating to cash fnows 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 win expose Chester to the most risk of needing an emergency loan? Save Answer Select. 1 Purchases assets at a cost of $15,000 (000) Sels $7,000 (000) of long-term assets Issues 100 (000) shares of common stoci Repurchases $10,000 (000) of stocik 10 F11 F12 F4 F5 F6 F3

Explanation / Answer

A sale of $7,000,000 worth of long term assets expose the company to the most risk of needing an emergency loan.

Option (B) is correct answer.

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