Question: You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company projected a financing surplus).

You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company projected a financing surplus). Which of the following options, all else equal, would NOT correct the projected imbalance?

A stock repurchase

A decrease in accounts payable

An increase in cash and marketable securities

An increase in the retention ratio

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