Analysts Look for Red Flags in Financial Statements That May

Analysts look for red flags in financial statements that may signal financial trouble.Which of the following is a red flag that suggests that a company may be in trouble?

A) a significant increase in net income for several years in a row
B) a consistent movement in sales,merchandise inventory,and accounts receivable
C) a reduction in the debt ratio
D) operating activities as is a major source of cash flows

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