Davis, CPA, believes there is substantial doubt about the ability of Hill Co. to continue as a going concern for a reasonable period of time. In evaluating Hill’s plans for dealing with the adverse effects of future conditions and events, Davis most likely would consider, as a mitigating factor, Hill’s plans to

a. Accelerate research and development projects related to future products.

b. Accumulate treasury stock at prices favorable to Hill’s historic price range.

c. Purchase equipment and production facilities currently being leased.

d. Negotiate reductions in required dividends being paid on preferred stock.