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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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