Everything else equal, which of the following will tend to increase if a firm switches to a restrictive short-term financial policy from a flexible short-term policy? I. shortage costs II. amount of accounts receivables on the balance sheet III. amount of inventory on the balance sheet IV. amount of cash and marketable securities on the balance sheet

a.

II, III and IV only

b.

II and IV only

c.

I only

d.

I, II, III and IV

e.

III and IV only