Sanjay Supplies Limited is concerned about its ability to pay its debts. Selected financial information follows.

Required:
Analyze the information and explain why Sanjay is experiencing problems with its cash balance. What could Sanjay do to reduce these problems?

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Sanjay Supplies Limited Selected Financial Information (in thousands) Years ended October 31 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 2016 2015 2014 $17,100 $16,300 $12,700 210 40 1,180 940 20 60 2,130 1,730 560 340 80 1,510 1,250 140 490 80 610 80