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Explain how a company can have a positive income yet require significant outside financing to keep from running out of cash. Through the % of
Explain how a company can have a positive income yet require significant outside financing to keep from running out of cash. Through the % of sales model, explain how a large growth in sales tends to lead to a large growth in assets that eat up cash and are insufficiently financed by net income and growth in liabilities, thus requiring additional financing from lenders/investors
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