Question $(1)$

Which activity would cause the short$-$term financing gap of a company to decrease?

Purchasing machinery to raise production capacity and meet increased demand.

Securing supply arrangements by placing suppliers on new single source contracts with penalties for late delivery of goods.

Implementing a just$-$in$-$time inventory management system that minimizes the levels of raw material inventories required to be held.

Renegotiating a revolving credit facility on more favorable terms.