2014	2015	2016
Port West Trading Limited
	Sales	1,400,000	1,500,000	1,720,000
	Cost of goods sold	1,316,000	1,450,000	1,680,000
		84,000	50,000	40,000
	Inventory	140,000	180,000	210,000
	Accounts receivable	100,000	140,000	200,000
	Cash	10,000	0	0
	Current assets	250,000	320,000	410,000
	Accounts payable	79,850	85,000	90,000
	Short term debt	0	34,850	79,850
	Provisions- returns/refunds	1,400	1,500	1,720
	Current liabilities	81,250	121,350	171,570

Assume you are the auditor of Port West Trading Limited. Management provides you with a series of explanations for the 2016 financial results. Which of the following reasons is valid for poor operating cash flow?

Select one:

a. An increase in finished goods inventory.

b. A decrease in raw material inventory.

c. An increase in accounts payable.

d. A decrease in accounts receivable.