Scenario 8-1. Dea's Drugstore is currently having cash-flow problems. As the bills come due, Dea is having more difficulty ensuring that there is sufficient cash to pay those bills. It is a relatively new problem for her business, and she is not sure what to do. The only changes that she is aware of are some new requirements in the way insurance companies are reimbursing their customers for prescription drugs. Overall, inventory in the store is moving as usual and expenses have not increased from last year.
-In Scenario 8-1, if Dea does not solve her cash-flow problems shortly, ______.
A) she will not make a profit
B) sales will fall
C) expenses will fall
D) she may become insolvent

Question

Quizplus · Accepted Answer

Dea's cash-flow problems indicate she might not have enough cash to meet her financial obligations, leading to insolvency if not resolved. Profitability, sales, and expenses are not directly mentioned as issues in the scenario.