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Spectrum Company had an increase in sales and net income during its last fiscal year,...

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Accounting

Spectrum Company had an increase in sales and net income during its last fiscal year, but cash decreased and the firm was having difficulty paying its bills by the end of the year. What factors might cause a shortage of cash even though a firm is profitable?
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Spectrum Company had an increase in sales and net income during its last fiscal year, but cash decreased and the firm was having difficulty paying its bills by the end of the year. What factors might cause a shortage of cash even though a firm is profitable

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