(Liquidity and profitability analysis) Cathy's Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the company's operations consisted of a small diner. In 2019, the company added the catering services as a way to expand sales without having to add space for seats. As the catering side of the business grew in 2020, the company purchased a used vehicle for deliveries. All sales in the diner are cash, debit, or credit card, but for catering jobs, customers are invoiced after the event. Most of the company's suppliers offer terms of 30 days. Selected financial information for Cathy's Cuisine Ltd. follows. 2020 2019 Assets Cash Accounts receivable Inventory Land Building and equipment Total assets Liabilities and equity Accounts payable Short-term note payable Mortgage payable current Mortgage payable Share capital Retained earnings Total liabilities and equity Other information Sales Cost of goods sold Net Income $8,040 $3,250 16.080 9,380 11,780 6,120 15,850 15,850 29,030 25,950 $80.780 $60,560 $9.710 $7,850 1,630 0 2,400 2.400 21.600 24,000 11,000 11.000 34,440 15,310 $80,780 $60,560 $192,060 $161.520 84,160 79.260 19.130 5,330 (Liquidity and profitability analysis) Cathy's Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the company's operations consisted of a small diner. In 2019, the company added the catering services as a way to expand sales without having to add space for seats. As the catering side of the business grew in 2020, the company purchased a used vehicle for deliveries. All sales in the diner are cash, debit, or credit card, but for catering jobs, customers are invoiced after the event. Most of the company's suppliers offer terms of 30 days. Selected financial information for Cathy's Cuisine Ltd. follows. 2020 2019 Assets Cash Accounts receivable Inventory Land Building and equipment Total assets Liabilities and equity Accounts payable Short-term note payable Mortgage payable current Mortgage payable Share capital Retained earnings Total liabilities and equity Other information Sales Cost of goods sold Net Income $8,040 $3,250 16.080 9,380 11,780 6,120 15,850 15,850 29,030 25,950 $80.780 $60,560 $9.710 $7,850 1,630 0 2,400 2.400 21.600 24,000 11,000 11.000 34,440 15,310 $80,780 $60,560 $192,060 $161.520 84,160 79.260 19.130 5,330