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 2024 $17,100 20 2,130 1,730 560 340 80 2023 $16,300 60 1,510 1,250 140 490 80 2022 $12,700 210 40 1,180 940 T 610 80