Sanjay Supplies Limited is concerned about its ability to pay its debts. Analyze the information below and explain why Sanjay is experiencing problems with its cash balance. What could Sanjay do to reduce these problems?
Sanjay Supplies Limited
Selected Financial Information (in thousands)

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Years ended October 3 2011 2012 2013 Sales on credit Cash Short-term investments (cashable on demand) Accounts receivable Inventories Short-term bank loans (payable on demand) Accounts payable Other short-term liabilities 12,700 $14.100 $17.100 20 210 40 1,180 940 60 1,510 1,250 140 490 80 1,980 1.470 560 340 80 610 80