Pressure to increase current asset buildup often results from

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When sales are expanding rapidly, there is pressure to increase current asset buildup to maintain inventory levels, meet customer demands, and finance the production process. This is because higher levels of sales require more resources, which can strain a firm's working capital. A decline in sales growth would typically reduce the need for current asset buildup, while increased demands from short-term creditors would create pressure to maintain or increase current assets, but not necessarily to expand them.

Pressure to Increase Current Asset Buildup Often Results from