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A company is experiencing the following long-term trend on a month-over-month basis: Sales are increasing...

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Finance

A company is experiencing the following long-term trend on a month-over-month basis:

Sales are increasing by $100,000, a 15% increase

Accounts receivable are increasing by$5,000 , a 1% increase

Accounts payable are increasing by $20,000, a 4% increase

Labor expenses are increasing by $40,000 a 3 % increase.

With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company?

A. Financing working capital requirements

B.Repaying short-term debt

C. Reducing labor costs

D. Factoring accounts receivable

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