You are provided the following amount about Cradle Inc.
2017
|
2018
|
2019
| |
Sales
|
56,248
|
58,162
|
65,187
|
Cost of goods sold
|
35,047
|
36,205
|
42,372
|
Gross margin
|
21,201
|
21,957
|
22,815
|
Operating expenses
|
4,287
|
4,446
|
4,677
|
Depreciation
|
6,111
|
6,047
|
6,216
|
Net income before tax
|
10,803
|
11,464
|
11,922
|
Income tax
|
2,377
|
2,522
|
2,377
|
Net income
|
8,426
|
8,942
|
9,545
|
Cash
|
974
|
3,001
|
3,329
|
Accounts receivable
|
9,531
|
9,855
|
11,770
|
Inventory
|
7,886
|
8,046
|
10,004
|
Fixed assets, net
|
45,169
|
42,148
|
45,169
|
Line of credit
|
9,000
|
-
|
10,000
|
Accounts payable
|
4,381
|
4,526
|
5,296
|
Current portion of long term debt
|
3,862
|
3,247
|
4,124
|
Long term debt, net of current portion
|
31,149
|
35,167
|
26,197
|
Common stock
|
3,000
|
3,000
|
3,000
|
Retained earnings
|
12,168
|
17,110
|
21,655
|
Line of credit maximum
|
25,000
|
25,000
|
60,000
|
Does Cradle have liquidity issues?
In order to answer this question you should perform a cash inflow / outflow analysis and examine key liquidity ratios and interpret the results.
