1) Looking forward to next year, if Sam’s present cash amount is= $17,334 (000) and cash flows from operations next period are unaffected from this period and Sam takes only the actions given 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 given activities will expose Sam to the most risk of requiring the emergency loan?
Sells $7,000 (000) of long-term assets
Issues 100 (000) shares of common stock
Repurchases $10,000 (000) of stock
Purchases assets at a cost of $15,000 (000)
2) High Pump is purchasing and extruder for= $80,000. Extruder will need the expenditure of $12,000 for installation and $4,000 for training new operators. New equipment will need the raise of $5,000 in inventory, $4,000 in accounts receivable, and $3,000 in accounts payable. Determine the net investment for this project?