Balance Sheet
	2019	2018	2017
Assets
Cash	$13,000	$19,000	$18,000
A/R	3,000	1,000	0
Inventory	18,000	12,000	8,000
Net building/land/equipment	70,000	70,000	70,000
Total	104,000	102,000	96,000
Liabilities
A/P	$9,000	$7,000	$5,000
Notes Payable	4,000	4,000	0
Total	13,000	11,000	5,000
Capital	91,000	91,000	91,000

In talking with the current owners, they disclose the following:

• They took out a $4,000 loan in 2018 in order to have enough cash to buy more inventory and create bar tabs with local customers
• They increased cash by stretching their payments to suppliers to 30 days in turn losing out on a 2% discount for paying in 10 days as they always had
• In 2019, they used up cash to cover increased bar tabs and to pay for more inventory. They also continued increased inventory purchases with additional purchases on account
• All net income generated by the business is kept as a salary for the owners as a drawing
• They have not bought any new equipment or machinery or done any maintenance on the building in the last 10 years because they knew they were going to sell the business they only did repairs

1. What problems do you see with the following:

1. Cash Management

2. A/R (bar tabs) Management

3. Inventory Management

4. Fixed Asset Management

5. A/P Management

6. Notes Payable (Loan) Management

7. Net Income / Salary for the owners