Which of the following statements is true?

Multiple Choice

The cash flows generated in a given time period are equal to the profits reported.

As long as they are profitable, companies should always seek to maximize sales growth.

None of the options are correct.

Companies that grow rapidly very rarely encounter financial problems.

It is possible for fast-growing companies to run out of cash, even when they are profitable.

Profits provide assurance that cash flow will be sufficient to maintain solvency.