Attached you will find select financial data for Morgan Creek, a motion picture production company based in Los Angeles, California. Using the various ratios provided in the file, please review the data and offer your overall assessment as to the company's financial health. What trends do you notice? Are there any storm clouds on the horizon?

Balance Sheets
		Four Years Ago		Current Year
Assets:
Cash		$ 28,000		$ 7,100
Accounts Receivable		170,100		236,800
Inventory		157,200		246,100
Total Current Assets:		355,300		490,000
Building and Equipment	67,100		74,800
Allowance for Depreciation	18,200	48,900	26,100	48,700
Other Assets		18,500		23,700
Total		$ 422,700		$ 562,400
Liabilities and Capital:
Accounts Payable		$ 61,700		$ 125,700
Notes Payable - trade		-		14,800
Notes Payables - bank		25,000		60,000
Other Liabilities		18,300		26,100
Total Current Liabilities:		105,000		226,600
Mortgage (5%)		16,200		9,600
Shareholders' Equity		301,500		326,200
Total		$ 422,700		$ 562,400