Suppose that in the control phase of the financial planning process a firm discovers it cannot raise the funds that are required to meet the forecasted sales. In this situation, the firm should ______.

use available cash to repay as many outstanding loans as possible

scale back its projected level of operations

expand its plant and equipment to the level necessary to meet the sales forecast

build up its inventory quickly

reformulate its plans to increase retained earnings and to decrease the dividend payments to stockholders