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A company with healthy profits is facing a cash shortage. Which of the following events could account for this? You may have more than one

A company with healthy profits is facing a cash shortage. Which of the following events could account for this? You may have more than one answer.

1 Delaying payments to creditors (vendors)

2 An increase in dividends declared

3 The recent acquisition of another company

4 The lengthening of the credit period granted to customers (customers have longer to pay)

5 Strengthening the credit extension policy (only well-qualified buyers are extended credit)

6 Increase in Unearned Revenue for the period

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