Broke Inc Is Experiencing a Cash Flow Problem Finding That

Multiple Choice

Broke Inc is experiencing a cash flow problem finding that its cash decreases, even though net income increases. Which of the following is/are a possible reason(s) ?

A) Lag between cash expenditures incurred in producing goods and cash collections from customers once the firm sells those goods.
B) The firm must generally produce more units than it sells during a period of growth if it is to have sufficient quantities of inventory on hand for future sales.
C) Cash needed for a higher level of production exceeds the cash received from the prior period's sale.
D) all of the above
E) none of the above