A public company's risk profile is currently in balance. The managements mission statement is to minimize stock devaluation. However, it is forecasting a need for working capital in the short term. Which of the following solutions would BEST assist management in accomplishing its mission?

a$.$ Pay out dividends

b$.$ Use debt financing

c$.$ Issue additional reserves

d$.$ Redeem outstanding shares

A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?

a$.$ Cash balance is not affected, and income is increased.

b$.$ Cash balance is increased, and income is decreased.

c$.$ Cash balance is increased, and income is increased.

d$.$ Cash balance is increased, and income is not affected.