Transcribed Image Text
You are provided with the following information about abusiness:a. The sales of the business has increased over the pastfinancial year;b. The gross profit of the business has decreased;c. The payment periods for both accounts receivable and accountspayable have increased; andd. The amount values of inventory and cash have declined.Asked: Briefly provide possible reasons for each of the abovementioned situations and indicate whether it should be regarded assigns of possible overtrading or not.