11. You are working as a loan officer at a local bank. Earlier today, a former high-school classmate came in to see you about a loan for the family’s retail business. After looking over the store’s financial statements, you notice that the store is posting a strong net income growth. However, these statements also reveal that the store has had a negative cash flow for the last two years and that account receivables have almost doubled over the same time span.

Should this concern you?