Inventories are a staggering 60% of sales and are full of soon to obsolete inven

tory. It is possible that this inventory of cds will not be able to be sold at f
ull retail value with the growth of the dvd market. Perhaps more important to th
e current financial outlook, as inventories increase, so does the amount the com
pany is required to borrow increases. The company is borrowing money just to mai
ntain their inventories.