According to EZ Cash Companys budgeted income statement for 2020, it is expected to be highly profitable in 2020. However, its cash budget indicates that it will likely run out of cash in the fourth quarter of 2020. Which of the following is not a reasonable way for EZ Cash Company to manage this cash shortage?

Group of answer choices

Encourage customers to pay their bills early (e.g., offer them a small discount for early payment)

Invest in new equipment to reduce direct labor costs and improve profitability

Borrow money

Pay suppliers later than usual and incur a small penalty for late payment

Trick question a profitable company cannot run out of cash