Question: Crafton Software reported the following amounts on its balance sheets at December 31, 2016, 2015, and 2014: Sales and profits are high. Nevertheless, Crafton is

Crafton Software reported the following amounts on its balance sheets at December 31, 2016, 2015, and 2014:

Sales and profits are high. Nevertheless, Crafton is experiencing a cash shortage. Perform a vertical analysis of Crafton Softwar's assets at the end of years 2016,2015, and 2014. Use the analysis to explain the reason for the cash shortage.

2014 $ 7,245 19,320 183,540 33,810 2016 2015 $ 7,920 15,840 237,600 42,240 S 14,750 , net....29,500 Inventory..312,700 Prepaid expenses Property, plant, and 35,400 224,400 $528,000 equipment, net .. 239085 Total asset. $590,000

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