The company's ratio of cash to noncash assets increased in the current year from 20% to 30%? Which of the following represents the most likely reason for this increase?

A) The company maintained operations only in the United States.

B) The company declared a large dividend in the current year.

C) Management forecasts additional operating volatility in future periods.

D) The company acquired additional equipment and buildings for expansion of operations

Answer: Management forecasts additional operating volatility in future periods