Your friend is having cash flow issues. But they're confused, since it was a record year for them profit-wise. You check out their business financials and documents to figure out why they're having an issue: Question 29Answer a. They always rush to pay their debtors b. They sell their products with overly favourable payment terms (receivables are high) c. By leasing equipment, they have higher expenses rather than assets d. They have more inventory than they have accounts payable e. Their loans are equal to their equity