Answer:
Lets talk about the rice industry and discuss it in the light of the stages of of a business;
Introduction: The industry will start small and enter the competition among other rice mills in the area.
Growth: The company starts to make rapid sales and cash inflow increases.
Shakeout: The sales slow down slowly as the company is covering the distance towards maturity.
Maturity: The company has reached a stage where the cash inflow is stagnant along with the sales. No further growth is happening in the rice mill.
Decline: The company is over run with factors such as market competition and economy. Failure to keep the expenses afloat will eventually decline.
Answer:
The correct statement is A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make required payments.
Explanation:
