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A company is experiencing the following long-term trend on a month-over-month basis:
Sales are increasing by $100,000, a 15% increase
Accounts receivable are increasing by$5,000 , a 1% increase
Accounts payable are increasing by $20,000, a 4% increase
Labor expenses are increasing by $40,000 a 3 % increase.
With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company?
A. Financing working capital requirements
B.Repaying short-term debt
C. Reducing labor costs
D. Factoring accounts receivable
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