Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). And our first question is from line of Jay Harris with Goldsmith & Harris Asset Management. Please go ahead.
Jay Harris - Goldsmith & Harris Asset Management
Good morning, gentlemen. Steve, on January 16th, conference call, you had some slides which indicated that the debt of the company would be roughly inline with at December 31st with where it was at the end of September. Why are we seeing different numbers now for December 31st that were implied in the slides.
Steve Schumm
Jay, I think the slides, we had a target on there that was shown debt net of cash, and I think we reasonably inline with that.
Jay Harris - Goldsmith & Harris Asset Management
Okay. I just remember a $215 million to $218 million of debt level.
Steve Schumm
Yeah. Let me check something real quick here, Jay, but I am pretty sure we are within a pretty tight range of those numbers. Let me.
Jay Harris - Goldsmith & Harris Asset Management
All right, the next question I have is, you indicated just now on the call that your cash was flat at the end of February with December 31st. What about debt?
Steve Schumm
I think I said that debt availability.
Jay Harris - Goldsmith & Harris Asset Management
No, not debt availability. Debt incurred.
Steve Schumm
Debt incurred is comparable.
Jay Harris - Goldsmith & Harris Asset Management
All right, so that you were cash flow-neutral in the first two months of the year.
Steve Schumm
What I also pointed out was in that period of time on February the 1st, we paid more than $8 million on our bonds, and we also continued the trend of reducing payables. So payables went from about $30 million at the end of the year, down below $20 million.
Inventories continued to lag a bit. So, we were continuing to increase our investments in inventories. Despite that, cash did not, we still kept our cash and debt position about where it was.
Jay Harris - Goldsmith & Harris Asset Management
Excellent. Paul, as you modulate your cost structure to your perception of ongoing business, where do you think the SG&A will flatten out relative to revenues, 20% or some different number?
Paul Melnuk
But as we have indicated in our comments, we are looking to maintain it at or better than the ranges experienced over the last couple of years which was between 21% and 22% of net sales.
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