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Storm Weather Industries manufactures weather equipment. Selected financial data for Storm Weather is presented below; use the information Current Assets As of Dec. 31, 2012

Storm Weather Industries manufactures weather equipment. Selected financial data for Storm Weather is presented below; use the information

Current Assets As of Dec. 31, 2012 Dec. 31, 2011

Cash and cash equivalents $ 376,843 $ 205,088

Marketable Securities 166,106 187,064

Accounts Receivable (net) 258,387 289,100

Inventories 424,493 391,135

Prepaid Expenses 55,369 25,509

Other current assets 83,053 85,029

Total Current Assets 1,364,251 1,182,925

Plant Property and Equipment 1,384,217 625,421

Long-Term Investment 568,003 425,000

Total Assets $3,316,471 $2,233,346

Current Liabilities Short-term borrowings $ 206,376 $ 70,419

Current portion of long-term debt 155,000 168,000

Accounts payable 254,111 286,257

Accrued liabilities 273,658 166,983

Income taxes payable 97,735 178,911

Total Current Liabilities 986,880 870,570

Long-Term Debt 500,000 300,000

Deferred Income Taxes 215,017 262,404

Total Liabilities 1,701,897 $1,432,974

Common Stock $ 425,250 $ 125,000

Additional Paid-in Capital 356,450 279,951

Retained Earnings 832,874 395,421

Total Stockholders' Equity 1,614,574 800,372

Total Liabilities and Stockholders' Equity $3,316,471 $2,233,346

Selected Income Statement Data - for the year ending December 31, 2012:

Net Sales $4,685,340

Cost of Goods Sold (2,942,353)

Selling Expenses (884,685)

Operating Income 858,302

Interest Expense (45,240)

Earnings before Income Taxes 813,062

Income Tax Expense (325,609)

Net Income $ 487,453

Selected Statement of Cash Flow Data - for the year ending December 31, 2012:

Cash Flows from Operations $1,256,084

Capital Expenditures $745,862

What is your overall assessment of the companys credit risk from the analyses of the financial data, provided? Explain.

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