They also plan to deploy more Radio Frequency ID (RFID) technology throughout their operations to manage inventory.

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The seemingly massive debt load, the lack of cash and the inability to generate cash through operations, the massive amount of inventory, and the negative equity are all worrisome.

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And many traditional store retailers that have added significant online operations have been able to consolidate inventory into fewer distribution centers, often strategically placed to minimize sales taxes and shipping costs.

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And modeling out what could happen to their business if their customers began to hold on to cars longer, they discovered that they could reduce their inventory levels and increase their emphasis on service operations, just when customer demand began to lean that way.

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Roughly speaking, cash flow from operations is defined as net income plus depreciation, plus decreases in receivables and inventory, plus increases in accounts payable and deferred taxes payable.

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Multiple factors could affect revenue loss, including the amount of finished goods inventory available, extent of the damage to the building and the equipment, the length of time for operations to resume back to full production.

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