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 thous ands) Years ended October 31 2020 2019 2018 Sales on credit $17,100 $16,300 $12,700 Cash 20 60 210 Short-term investments (cashable on demand) 40 Accounts receivable 2,130 1,510 1,180 Inventories 1,730 1,250 940 140 Short-term bank loans (payable on demand) 560 Accounts payable 340 490 610 Other short-term liabilities 80 80 80