Ask Question
21 August, 07:10

Looking forward to next year, if Baldwin's current cash balance is $25,719,453 and Cash Flows From Operations next period are unchanged from this period, which of the following activities will expose Baldwin to the most risk of needing an emergency loan? Retires $10,000,000 in Long-Term Debt Sells $10,000,000 of their Long-Term Assets Issues 10,000 shares of stock at the current stock price Purchases assets at a cost of $25,000,000

+2
Answers (1)
  1. 21 August, 10:54
    0
    Purchases assets at a cost of $25,000,000

    Explanation:

    The first three options are related to an increase in the cash available:

    (A) takes a loan so cash increase

    (B) sells assets so cash also increase

    (C) issued shares, which also increase the cash available

    while the purchase of assets will decrease cash. Exposing the company to a certain risk of needing a loan
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Looking forward to next year, if Baldwin's current cash balance is $25,719,453 and Cash Flows From Operations next period are unchanged ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers