The increase in purchases and the interest and principal payments on the mort seriously eroded cash the three cash crunch had been met through a combination of slowly increasing the line of credit at the bank and, during the last year, not taking the cash discounts of- fered by the store's suppliers. Reed's purchased about 80 percent of its pur chases on terms of 3/10, net 60 and until this year had always taken the cash dis count, but its accounts were now almost 40 days past due, and the supplier were demanding payment with the threat of ceasing deliveries until paymer was made. This threat had pushed Jim into going to see his banker with the ide of increasing his line of credit another $100,000.