LM Corporation's genetically engineered flowers have rapidly gained market acceptance and shipments to customers have increased dramatically. The company is preparing for significant increases in production Management notes that despite increasing profits the cash balance has declined, and it is forced to nearly double its debt financing in the current year. You are hired to advise management as to specific causes of the cash deficiency and how to remedy the situation. You are given the following statement of cash flows of LM Corporation for Year 2: LM Corporation Statement of Cash Flows For the Year Ended December 31, Year 2 Cash provided from (used for) operations Net Income $160 Add(deduct) items to convert to cash basis: Amortization 10 Depreciation 95 Inc. in accounts payable 30 Inc. in deferred income tax 12 Inc. in other current liabilities 7 Inc. in accounts receivable (310) Inc in inventories (145) Inc. in prepaid expenses 125) Net cash used for operations $(166) Cash provided from (used for) investing activities Purchase of patents (140) Addition to plant and equipment (700) Addition to other assets 125) Net cash used for investing activities (865) Cash provided from (used for) financing activities Addition to long term debt 800 Issuance of common stock 200 Dividends paid 1109) Net cash provided from financing activities 891 Net decrease in cash $1140) Required: Describe options available to management to remedy the cash deficiency