Inventory and floor-plan financing define the balance sheet
A furniture store's cash is tied up in showroom and warehouse inventory, often financed through floor-plan loans from manufacturers or lenders. That financing is a debt obligation tied to specific pieces, and it does not simply vanish at closing. Understand how much inventory is owned outright versus floor-planned, what the carrying terms are, and how aged the stock is, because slow-moving inventory is a cost, not an asset.
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