Can a firm with positive net income run out of cash? explain. (select all the choices that apply.) a. a firm that has positive net income could never run out of cash. b. a firm can have positive net income but still run out of cash. c. for example, to expand its current production, a profitable company may spend more on investment activities than it generates from operating activities and financing activities. net cash flow for that period would be negative, although its net income is positive. d. it could also run out of cash if it spends a lot on financing activities, perhaps by paying off maturing long-term debt, repurchasing shares, or paying dividends.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains.the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available.two-thirds of the work related to $15,000 of cash received in advance was performed this period.the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired.wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.