McCormick Software reported the following amounts on its balance sheets at December 31, 2012, 2011, and 2010:

Sales and profits are high. Nevertheless, McCormick is experiencing a cash shortage. Perform a vertical analysis of McCormick Software€™s assets at the end of years 2012, 2011, and 2010. Use the analysis to explain the reason for the cashshortage.

2012 2011 S 23,200 Receivables, net....34,800 Inventory..266,800 34,800 $ 15,600 20,800 197,600 41.600 2010 S14,340 23,900 148,180 33.460 Prepaid expenses.. Property, plant, and equipment, net Total assets .. 220,400 $580,000 244,400 $520,000 $478,000