Which of these occur during an annual cycle if a firm with a positive rate of growth adopts a compromise financing policy? I. Some short-term financing. II. Increase in fixed and permanent current assets. III. Short-term financing in excess of long-term financing. IV. Long-term financing sufficient to cover all asset requirements.

a. I only

b. II and IV only (*picked and was wrong answer*)

c. III only

d. I and II only

e. III and IV only