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6. Broke Inc is experiencing a cash flow problem finding that its cash decreases, even though net income increases. Which of the following is a

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6. Broke Inc is experiencing a cash flow problem finding that its cash decreases, even though net income increases. Which of the following is a possible reason? 1 a. lag between cash expenditures incurred in producing goods and cash collections from customers once the firm sells those goods b. must generally produce more units than it sells during a period of growth if it is to have sufficient quantities of inventory on hand for future sales c. cash needed for a higher level of production exceeds the cash received from the prior period's sale 3 d. all of the above e. none of the above

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