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Defiance Precision Products (DPP) has an increase in sales of 25% over the 2010 income statement. The company has a decrease in cash flow from
Defiance Precision Products (DPP) has an increase in sales of 25% over the 2010 income statement. The company has a decrease in cash flow from operational sources for the same time period. Which of the following statements describes a possible reason for the discrepancy?
a. DPP has relaxed its credit policies resulting in increased sales but reduced collections.
b. Fictitious sales were recorded during the period.
c The company has additional revenue from non-operating sources.
d. Both a and b
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