Blockbuster no longer exists in its once proud form - a company offering video rentals from stores at prime locations all around the country. For the most part, Blockbuster and other similar companies failed due to technological changes and the smarts of competitors (such as Netflix). it seems likely that trouble with Blockbuster's business model...
A. would have first surfaced as declining and then negative operating income on the income statement.
B. was a result of the company failing to add more equity to its balance sheet.
C. could have been prevented if it had collected more of its accounts receivables.