Claras Costumes is a retailer of costumes, primarily purchased for Halloween. Which of the following characteristics would most likely be present in Claras financial statements?

What is the order in which events occur in in the operating cycle?

1. Receivables will increase after the increase in inventories
2. Inventory will increase immediately following the seasonal peak
3. The need for credit will be lowest during the high point in the operating cycle
4. Fixed asset spending will be highest at the seasonal peak

Given the operating cycle, which of the above options best describes what occurred in the case of Clara's Costumes business?