How is it possible for a firm to be profitable and still go bankrupt? (a) Earnings have

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How is it possible for a firm to be profitable and still go bankrupt?

(a) Earnings have increased more rapidly than sales.

(b) The firm has positive net income but has failed to generate cash from operations.

(c) Net income has been adjusted for inflation.

(d) Sales have not improved even though credit policies have been eased.

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