net product sales may be periodically impacted by adjustments made to the company 's sales allowance and marketing support accrual to record unanticipated customer deductions from accounts receivable or to reduce the accrual by any amounts which were accrued in the past but not taken by customers through deductions from accounts receivable within a certain time period . in the aggregate , these adjustments had the effect of increasing net product sales and operating income by approximately nil and $ 16,000 for fiscal 2020 and fiscal 2019 , respectively . net product sales are comprised primarily of the sales of houseware and audio products which bear the emerson ® brand name . the major elements which contributed to the overall decrease in net product sales were as follows : 19 i ) houseware product net sales decreased $ 1.3 million , or 37.2 % , to $ 2.3 mi llion in fiscal 2020 as compared to $ 3.6 million in fiscal 2019 , principally driven by a decrease in sales of microwave ovens , compact refrigerators and wine products . the year-over-year decreases were driven by lower year-over-year retail sell through on existing models and competitive pricing activity . ii ) audio product net sales were $ 3.8 million in fiscal 2020 compared to $ 5.0 million in fiscal 2019 , a decrease of $ 1.2 million , or 23.8 % , resulting from decreased net sales of clock radios . business operations — the company expects to continue to expand its existing distribution channels and to develop and promote new products to regain shelf spaces with retailers in the usa . the company is also investing in products and marketing activities to expand its sales through internet and ecommerce channels . these efforts require investments in appropriate human resources , media marketing and development of products in various categories in addition to the traditional home appliances and audio products on which the company has historically focused . the company also is continuing its efforts to identify strategic courses of action related to its licensing activities , including seeking new licensing relationships . the company has engaged lmca as an agent to assist in identifying and procuring potential licensees . emerson 's success is dependent on its ability to anticipate and respond to changing consumer demands and trends in a timely manner , as well as expanding into new markets and sourcing new products that are profitable to the company . geo-political factors may also affect demand for the company 's products , which are subject to customs requirements and to tariffs and quotas set by governments through mutual agreements and bilateral actions . the company expects that recently imposed and proposed u.s. tariffs on categories of products that the company imports from china , and china 's retaliatory tariffs on certain goods imported from the united states , as well as modifications to international trade policy , will affect its product costs going forward . if no mitigation steps are taken , or the mitigation is unsuccessful , the combination of tariffs will result in significantly increased annualized costs to the company as all of the company 's products are currently manufactured by suppliers in china . although the company is monitoring the trade environment and working to mitigate the possible effect of tariffs with its suppliers as well as its customers through pricing and sourcing strategies , including drawing down inventory built up in advance of the recent tariff increases , the company can not be certain how its customers and competitors will react to the actions taken . at this time the company is unable to quantify possible effects on its costs arising from the new tariffs , which are expected to increase the company 's inventory costs and associated costs of sales as tariffs are incurred , and some costs may be passed through to the company 's customers as product price increases in the future . however , if the company is unable to successfully pass through the additional costs or otherwise mitigate the effects of these tariffs , or if the higher prices reduce demand for the company 's products , it will have a negative effect on the company 's product sales and gross margins . during the fourth quarter of fiscal 2020 , the global covid-19 pandemic presented significant challenges and adversely affected the company 's business and operating results , and the operations and production capabilities of the company 's suppliers in china and the distribution capabilities of the company 's third party logistics provider , including as a result of quarantine or closure . the pandemic directly and indirectly disrupted certain sales and supply chain activities and affected the company 's ability to address those challenges during the fourth quarter , which contributed to a decline in fiscal 2020 net product sales and an increase in fiscal 2020 cost of sales . the pandemic has continued to have an adverse effect during the beginning of the first quarter of fiscal 2021 , including on inventory management following the cancellation or renegotiation of certain product orders , and the company expects that the pandemic will continue to have an adverse effect over the coming quarters , including on the magnitude and timing of orders by retailers , resellers , distributors and consumers . in light of the adverse effects of the covid-19 pandemic on the company 's business and on macroeconomic conditions domestically and internationally , along with the uncertainty associated with a potential recovery , the company has implemented certain cost-reduction actions intended to reduce expenditures in line with the lower demand for the company 's products in light of the effects of the covid-19 pandemic to the business. story_separator_special_tag while management considers future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance , in the event that management determines that a deferred tax asset 22 will likely be realized in the future in excess of the net recorded amount , an adjustment to the deferred tax asset would incr ease income in the period such determination was made . likewise , if it is determined that all or part of a net deferred tax asset will likely not be realized in the future , an adjustment to the deferred tax asset would be charged to income in the period su ch determination was made . sales return reserves . management must make estimates of potential future product returns related to current period product revenue . management analyzes historical returns , current economic trends and changes in customer demand for the company 's products when evaluating the adequacy of the reserve for sales returns . management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period . additional reserves may be required if actual sales returns increase above the historical return rates . conversely , the sales return reserve could be decreased if the actual return rates are less than the historical return rates , which were used to establish the reserve . sales allowance and marketing support accruals . sales allowances , marketing support programs , promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with asc topic 606 , “ revenue from contracts with customers ” . at the time of sale , the company reduces recognized gross revenue by allowances to cover , in addition to estimated sales returns as required by asc topic 606 , “ revenue from contracts with customers , ” ( i ) sales incentives offered to customers that meet the criteria for accrual and ( ii ) an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover . accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within asc topic 606. if additional marketing support programs , promotions and other volume-based incentives are required to promote the company 's products subsequent to the initial sale , then additional reserves may be required and are accrued for when such support is offered . recently adopted accounting pronouncements in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lease assets and liabilities to be recorded on the balance sheet . this update is effective for public entities in fiscal years beginning after december 15 , 2018 , including interim reporting periods within those fiscal years , and certain qualitative and quantitative disclosures are also required . early adoption was permitted . the company has adopted this asu and related amendments as of april 1 , 2019 on a modified retrospective basis . the company has applied the modified retrospective approach by recording a cumulative effect adjustment as of the date of adoption , whereby prior comparative periods will not be retrospectively presented in the consolidated financial statements . the company has also elected certain practical expedients permitted under the transition guidance , including to retain the historical lease classification as well as relief from reviewing expired or existing contracts to determine if they contain leases . the company will be exempting leases with an initial term of twelve months or less from balance sheet recognition and will not separate lease and non-lease components . upon adoption , the company recognized total lease liabilities of $ 695,000 , and corresponding right-of-use assets of $ 650,000 , all of which is associated with leased office space . the difference between the right-of-use asset and lease liability is due to the existing deferred balance , resulting from historical straight-lining of operating leases that were reclassified upon adoption to reduce the measurement of the right-of-use assets . the company 's consolidated statements of income and consolidated statements of cash flows were not materially impacted . see note 14 , “ leases ” for further details . recently issued accounting pronouncements the following asus were issued by the fasb which relate to or could relate to the company as concerns the company 's normal ongoing operations or the industry in which the company operates . accounting standards update 2019-12 “ income taxes ( topic 740 ) – simplifying the accounting for income taxes ” ( issued december 2019 ) in december 2019 , the fasb issued asu 2019-12 , “ income taxes ( topic 740 ) - simplifying the accounting for income taxes , ” which is intended to simplify various aspects related to accounting for income taxes . asu 2019-12 removes certain exceptions to the general principles in topic 740 and also clarifies and amends existing guidance to improve consistent application . asu 2019-12 is effective for fiscal years beginning after december 15 , 2020. this standard is required to take effect in the 23 company 's first quarter ( june 2021 ) of the company 's fiscal year ending marc h 31 , 2022. the company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures . accounting standards update 2016-13 “ financial instruments – credit losses ” ( issued june 2016 ) in june 2016 , the fasb issued asu 2016-13 “ financial instruments - credit losses ” to introduce new guidance for the accounting for credit losses on instruments within its scope . asu 2016-13 requires among other things , the measurement of all expected credit

liquidity and capital resources general as of march 31 , 2020 , the company had cash and cash equivalents of approximately $ 6.3 million as compared to approximately $ 7.9 million at march 31 , 2019. working capital decreased to $ 36.1 million at march 31 , 2020 as compared to $ 40.3 million at march 31 , 2019. the decrease in cash and cash equivalents of approximately $ 1.6 million is set out in “ cash flows ” below . cash flows net cash used by operating activities was approximately $ 1.9 million for fiscal 2020 resulting from a $ 4.3 million loss generated during the period and a $ 0.2 million decrease in income taxes payable partially offset by a $ 1.6 million decrease in inventory , a $ 0.5 million decrease in deferred tax assets , a $ 0.2 million decrease in prepaid purchases , $ 0.1 million decrease in accounts receivable , a $ 0.1 million decrease in prepaid expenses and other current assets and a $ 0.1 million decrease in other assets . net cash provided by investing activities was $ 0.3 million primarily due to a decrease of investments in short term certificates of deposit . net cash used by financing activities was nil . credit arrangements letters of credit — the company utilizes the services of one of its banks to issue secured letters of credit on behalf of the company , as needed , on a 100 % cash collateralized basis . at march 31 , 2020 and march 31 , 2019 , the company had no letters of credit outstanding . short-term liquidity the company 's principal existing sources of cash are generated from operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources general as of march 31 , 2020 , the company had cash and cash equivalents of approximately $ 6.3 million as compared to approximately $ 7.9 million at march 31 , 2019. working capital decreased to $ 36.1 million at march 31 , 2020 as compared to $ 40.3 million at march 31 , 2019. the decrease in cash and cash equivalents of approximately $ 1.6 million is set out in “ cash flows ” below . cash flows net cash used by operating activities was approximately $ 1.9 million for fiscal 2020 resulting from a $ 4.3 million loss generated during the period and a $ 0.2 million decrease in income taxes payable partially offset by a $ 1.6 million decrease in inventory , a $ 0.5 million decrease in deferred tax assets , a $ 0.2 million decrease in prepaid purchases , $ 0.1 million decrease in accounts receivable , a $ 0.1 million decrease in prepaid expenses and other current assets and a $ 0.1 million decrease in other assets . net cash provided by investing activities was $ 0.3 million primarily due to a decrease of investments in short term certificates of deposit . net cash used by financing activities was nil . credit arrangements letters of credit — the company utilizes the services of one of its banks to issue secured letters of credit on behalf of the company , as needed , on a 100 % cash collateralized basis . at march 31 , 2020 and march 31 , 2019 , the company had no letters of credit outstanding . short-term liquidity the company 's principal existing sources of cash are generated from operations .
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 Suspicious Activity Report : net product sales may be periodically impacted by adjustments made to the company 's sales allowance and marketing support accrual to record unanticipated customer deductions from accounts receivable or to reduce the accrual by any amounts which were accrued in the past but not taken by customers through deductions from accounts receivable within a certain time period . in the aggregate , these adjustments had the effect of increasing net product sales and operating income by approximately nil and $ 16,000 for fiscal 2020 and fiscal 2019 , respectively . net product sales are comprised primarily of the sales of houseware and audio products which bear the emerson ® brand name . the major elements which contributed to the overall decrease in net product sales were as follows : 19 i ) houseware product net sales decreased $ 1.3 million , or 37.2 % , to $ 2.3 mi llion in fiscal 2020 as compared to $ 3.6 million in fiscal 2019 , principally driven by a decrease in sales of microwave ovens , compact refrigerators and wine products . the year-over-year decreases were driven by lower year-over-year retail sell through on existing models and competitive pricing activity . ii ) audio product net sales were $ 3.8 million in fiscal 2020 compared to $ 5.0 million in fiscal 2019 , a decrease of $ 1.2 million , or 23.8 % , resulting from decreased net sales of clock radios . business operations — the company expects to continue to expand its existing distribution channels and to develop and promote new products to regain shelf spaces with retailers in the usa . the company is also investing in products and marketing activities to expand its sales through internet and ecommerce channels . these efforts require investments in appropriate human resources , media marketing and development of products in various categories in addition to the traditional home appliances and audio products on which the company has historically focused . the company also is continuing its efforts to identify strategic courses of action related to its licensing activities , including seeking new licensing relationships . the company has engaged lmca as an agent to assist in identifying and procuring potential licensees . emerson 's success is dependent on its ability to anticipate and respond to changing consumer demands and trends in a timely manner , as well as expanding into new markets and sourcing new products that are profitable to the company . geo-political factors may also affect demand for the company 's products , which are subject to customs requirements and to tariffs and quotas set by governments through mutual agreements and bilateral actions . the company expects that recently imposed and proposed u.s. tariffs on categories of products that the company imports from china , and china 's retaliatory tariffs on certain goods imported from the united states , as well as modifications to international trade policy , will affect its product costs going forward . if no mitigation steps are taken , or the mitigation is unsuccessful , the combination of tariffs will result in significantly increased annualized costs to the company as all of the company 's products are currently manufactured by suppliers in china . although the company is monitoring the trade environment and working to mitigate the possible effect of tariffs with its suppliers as well as its customers through pricing and sourcing strategies , including drawing down inventory built up in advance of the recent tariff increases , the company can not be certain how its customers and competitors will react to the actions taken . at this time the company is unable to quantify possible effects on its costs arising from the new tariffs , which are expected to increase the company 's inventory costs and associated costs of sales as tariffs are incurred , and some costs may be passed through to the company 's customers as product price increases in the future . however , if the company is unable to successfully pass through the additional costs or otherwise mitigate the effects of these tariffs , or if the higher prices reduce demand for the company 's products , it will have a negative effect on the company 's product sales and gross margins . during the fourth quarter of fiscal 2020 , the global covid-19 pandemic presented significant challenges and adversely affected the company 's business and operating results , and the operations and production capabilities of the company 's suppliers in china and the distribution capabilities of the company 's third party logistics provider , including as a result of quarantine or closure . the pandemic directly and indirectly disrupted certain sales and supply chain activities and affected the company 's ability to address those challenges during the fourth quarter , which contributed to a decline in fiscal 2020 net product sales and an increase in fiscal 2020 cost of sales . the pandemic has continued to have an adverse effect during the beginning of the first quarter of fiscal 2021 , including on inventory management following the cancellation or renegotiation of certain product orders , and the company expects that the pandemic will continue to have an adverse effect over the coming quarters , including on the magnitude and timing of orders by retailers , resellers , distributors and consumers . in light of the adverse effects of the covid-19 pandemic on the company 's business and on macroeconomic conditions domestically and internationally , along with the uncertainty associated with a potential recovery , the company has implemented certain cost-reduction actions intended to reduce expenditures in line with the lower demand for the company 's products in light of the effects of the covid-19 pandemic to the business. story_separator_special_tag while management considers future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance , in the event that management determines that a deferred tax asset 22 will likely be realized in the future in excess of the net recorded amount , an adjustment to the deferred tax asset would incr ease income in the period such determination was made . likewise , if it is determined that all or part of a net deferred tax asset will likely not be realized in the future , an adjustment to the deferred tax asset would be charged to income in the period su ch determination was made . sales return reserves . management must make estimates of potential future product returns related to current period product revenue . management analyzes historical returns , current economic trends and changes in customer demand for the company 's products when evaluating the adequacy of the reserve for sales returns . management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period . additional reserves may be required if actual sales returns increase above the historical return rates . conversely , the sales return reserve could be decreased if the actual return rates are less than the historical return rates , which were used to establish the reserve . sales allowance and marketing support accruals . sales allowances , marketing support programs , promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with asc topic 606 , “ revenue from contracts with customers ” . at the time of sale , the company reduces recognized gross revenue by allowances to cover , in addition to estimated sales returns as required by asc topic 606 , “ revenue from contracts with customers , ” ( i ) sales incentives offered to customers that meet the criteria for accrual and ( ii ) an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover . accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within asc topic 606. if additional marketing support programs , promotions and other volume-based incentives are required to promote the company 's products subsequent to the initial sale , then additional reserves may be required and are accrued for when such support is offered . recently adopted accounting pronouncements in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lease assets and liabilities to be recorded on the balance sheet . this update is effective for public entities in fiscal years beginning after december 15 , 2018 , including interim reporting periods within those fiscal years , and certain qualitative and quantitative disclosures are also required . early adoption was permitted . the company has adopted this asu and related amendments as of april 1 , 2019 on a modified retrospective basis . the company has applied the modified retrospective approach by recording a cumulative effect adjustment as of the date of adoption , whereby prior comparative periods will not be retrospectively presented in the consolidated financial statements . the company has also elected certain practical expedients permitted under the transition guidance , including to retain the historical lease classification as well as relief from reviewing expired or existing contracts to determine if they contain leases . the company will be exempting leases with an initial term of twelve months or less from balance sheet recognition and will not separate lease and non-lease components . upon adoption , the company recognized total lease liabilities of $ 695,000 , and corresponding right-of-use assets of $ 650,000 , all of which is associated with leased office space . the difference between the right-of-use asset and lease liability is due to the existing deferred balance , resulting from historical straight-lining of operating leases that were reclassified upon adoption to reduce the measurement of the right-of-use assets . the company 's consolidated statements of income and consolidated statements of cash flows were not materially impacted . see note 14 , “ leases ” for further details . recently issued accounting pronouncements the following asus were issued by the fasb which relate to or could relate to the company as concerns the company 's normal ongoing operations or the industry in which the company operates . accounting standards update 2019-12 “ income taxes ( topic 740 ) – simplifying the accounting for income taxes ” ( issued december 2019 ) in december 2019 , the fasb issued asu 2019-12 , “ income taxes ( topic 740 ) - simplifying the accounting for income taxes , ” which is intended to simplify various aspects related to accounting for income taxes . asu 2019-12 removes certain exceptions to the general principles in topic 740 and also clarifies and amends existing guidance to improve consistent application . asu 2019-12 is effective for fiscal years beginning after december 15 , 2020. this standard is required to take effect in the 23 company 's first quarter ( june 2021 ) of the company 's fiscal year ending marc h 31 , 2022. the company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures . accounting standards update 2016-13 “ financial instruments – credit losses ” ( issued june 2016 ) in june 2016 , the fasb issued asu 2016-13 “ financial instruments - credit losses ” to introduce new guidance for the accounting for credit losses on instruments within its scope . asu 2016-13 requires among other things , the measurement of all expected credit

