Next to the ad the with what financial information she Marilyn knew it was tle training in small business accounting and financial management, year, important to keep good records. She had kept track of revenues and expenses for the and she had summarized these in a table (see Exhibit 4), Marilyn had shared this revenue and cost information with a friend with some experience in small business financial man- agement, and the result was an estimated income statement for the year 2000 based upon the unaudited information in Exhibit 4. The estimated income statement, shown in Exhibit 5 revealed that Cowgirl had lost approximately $6,175 on operations before taxes. Combin- ing the information in Exhibits 4 and 5, it appeared that the inventory had built up to ap- proximately $16,848 by December 31, 2000. Marilyn had initially guessed she had $10,000 worth product and packaging inventory, about twice her normal level of inventory, be of turned chocolate warehouse and what tween what was stored in garage turned art studio was stored for her at Seattle Chocolates. But the financial analysis indicated that she either had more inventory than she thought or that she had given away more product than she originally thought. Either way, this represented a significant additional drain on her resources effect cash expended to cover both the operational loss and the inventory buildup was approximately $23,000 in total (see note 3 of Exhibit 4 for a more detailed ex planation). When Marilyn looked at the exhibits, she could see better why she had to loan the firm money. She also recognized that the bottom line was that the did not look good and she wondered if would help things around for 2001