Cheri's Beauty Products Ltd. reported the figures below at December 31, 2020, 2019 and 2018. The business has declared bankruptcy. You have been asked to review the business and explain why it failed.{Requirement}

Evaluate the trend of Cheri's Beauty Products's results of operations during 2018 through 2020. Consider the trends of sales, gross profit, and net income. Track the gross profit percentage (to three decimal places) and the rate of inventory turnover (to one decimal place) in each year-2018, 2019, and 2020. The ending inventory value for 2017 is \(\$ 7.0\). Also, discuss the role that selling expenses must have played in Cheri's Beauty Products's difficulties.

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A Cheri's Beauty Products Ltd. Statement of Income For the Years Ended December 31, 2020, 2019, and 2018 B C D E 2 (Thousands) 2020 2019 2018 3 Sales $ 41.0 $ 39.5 $ 37.1 4 Cost of sales 32.7 30.9 28.9 5 Selling expenses 8.0 7.2 6.8 6 Other expenses 0.4 1.0 0.8 7 Net income (net loss) $(0.1) $ 0.4 $ 0.6 8 Additional data: 9 Ending inventory 9.2 8.6 7.7 10