<prompt> Human: I am currently employed as the Manager for a very large and well known business. I took over the job 4 months ago and I have started to notice some red flags within the company.Some back story: The business is part of a larger group that is mostly based out of a major market on the west coast. The company is made up of 8 different very high end stores, and while each of the stores have different investors, they all one common owner. This owner is very involved in all of the concepts and in most cases very hands on, but has been noticeably absent in recent months from the location I am at.One of my responsibilities is the overall accounting for my location. Every week and month I generate profit and loss reports for the owners and investors. These reports are then handed over to one of the owners personal accountants. The accounting we do is extremely detailed, and we account for every penny to a greater extent than any other company I have ever worked for, but lately I have started to notice that something is wrong.My store has consistently turned a profit every month, some months by less of a margin than others, but we are always in the black. The last six weeks though, I have been informed that most of our purveyors have not been paid in months and some of the outstanding balances are 50,000 or more. Typically I will submit the payables report every month and the checks are issued from the owners private accountants. Apparently this has not been happening for some time now.Most of the suppliers have been willing to work with me and move to a C.O.D basis for the accounts until this is resolved, but honestly with the amount of money involved, I dont see how we could dig out from under the debt.What is more concerning is I intercepted a profit and loss report that had come from the private accountants, and they had added 164,000 loss per year to the reports and labeled it as depreciation.Does anyone know why a company would devalue its assets as a depreciation? Is this a red flag that they are planning to file bankruptcy?  <response>: Depreciation is a normal, non-cash expense used all the time by almost every business. Its not a red flag. Assets do depreciate over time and need replacement. Businesses depreciate equipment, buildings, etc., over many years.The red flag is not paying vendors... 