Vision Software Limited reported the following amounts on its balance sheets at December 31, 2020, 2019, and 2018:

Sales and profits are high. Nevertheless, Vision is experiencing a cash shortage. Perform a vertical analysis of Vision Software's assets at the end of years 2020, 2019, and 2018. Use the analysis to explain the reason for the cash shortage.

Transcribed Image Text:

Cash. Receivables, net. Inventory.. Prepaid expenses. Property, plant, and equipment, net.. Total assets 2020 2019 2018 $ 6,000 $ 5,000 5,000 30,000 22,000 19,000 148,000 105,000 74,000 2,000 2,000 1,000 96,000 88,000 87,000 $282,000 $224,000 $186,000