Your company has been approached by a retailer who is looking for an investor. The retailer states they have experienced rapid growth and need funds for inventory. They have provided the balance sheet contained in this spreadsheet.

Some additional facts:

$1$

$.$

$$The retailer bought a new store last year. They did not sell any fixed assets.

$2$

$.$

$$They had no dividends or other transactions to equity other than last years net income.

$3$

$.$

$$They do a lot of business online where customers pay for items in advance.