6. It is planned to reduced notes payable. Whether this is wise may depend on the notes payable interest vis-à-vis the return being earned on marketable securities.
7. Additions to plant are slightly greater than depreciation expense. This is not unusual in an inflationary era.
8. The accounts receivable balance will decline by about 35 percent even though there is an expected increase in sales. Is the collection department being overly optimistic about collections on account?