Question:

Looking forward to next year, if Baldwin's current cash balance is $20,201 (000) and cash flows from operations next period are unchanged from this period, and Baldwin 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 Baldwin to the most risk of needing an emergency loan?

Sells $10,000 (000) of their long-term assets

Pays a $5.00 per share dividend

Liquidates the entire inventory

Purchases assets at a cost of $25,000 (000)