Find the liquidity and solvency ratios, and discuss cash flow for a business case whose financial information is given below; for your recommendation regarding hiring or not hiring more employees for your team. Based on these ratios and cash flows, tell if hiring more employees would be best or not for the company's growth.

Financial Information

Balance Sheet

Assets
Cash in the bank	$45,000
Inventory	$203,000
Office Supplies	$2,500
Office Equipment	$15,000
Total Assets	$265,500

Liabilities
Accounts Payable	$150,000
Notes Payable	$75,000
Total Liabilities	$225,000

Owner's Equity
Assets	Liabilities + equity
Owner's Liability	$40,500

Statement of Cash Flows for Quarter Ending March 31

Cash received from customers	$250,000
Cash paid for salaries	$100,000
Cash paid for rent	$10,000
Cash paid for other items	$20,000
Cash provided by operating activities	$120,000

Investing Activities
Purchase of equipment	$5,000

Financing Activities
Additional owner's equity	$5,000
Cash on hand as of Jan 1	$35,000
	+$120,000
Cash on hand as of March 31	$155,000