The company shows you the following financial information for the 12-Month periods ended:

2018 2019

Sales $10,000,000 $15,000,000

COGS 5,900,000 8,800,000

Gross Profit 4,100,000 (41.0%) 6,200,000 (41.3%)

It also has the following selected Balance Sheet Data:

12/31/2017 12/31/2018 12/31/2019

Cash $ 100,000 $ 84,000 $ 22,000

Accounts Receivable $ 800,000 $ 860,000 $ 2,420,000

Inventory $ 460,000 $ 720,000 $ 1,340,000

Accounts Payable $ 400,000 $ 640,000 $ 880,000

The companys Board is confused. What is going wrong? How can a dramatically growing company with an increasing profit margin be on the verge of running out of Cash?