When reviewing a company's statement of cash flows, a bank manager noticed that the company reported a large increase in inventory but no increase in accounts receivable. All of the following are possible explanations for this EXCEPT

a.

the company has obsolete inventory on hand.

b.

the company experienced a decrease in demand for its products.

c.

the company may be stockpiling inventory in anticipation of a strike at a supplier location.

d.

the company increased its credit terms but not its production time.