However, Andre had used up most of his available funds in expanding the business and was well aware that future growth would have to be funded with external funds. What was worrying Andre was the fact that over the past two years, the store’s net income figures had been negative, and his cash flow situation had gotten pretty weak (See Tables 1 and 2). He figures that he had better take a good look at his firm’s financial situation and try to improve it, if possible, before his suppliers found out. He knew fully well that being shut out by suppliers would be disastrous!