Financial data for Industrial Inc follows: ($ in thousands)

a. Calculate the current and quick ratio at the end of each year. How has the company's short-term liquidity changed over this period?
b. Assuming a 365-day year for all calculations, compute the following:
i. The collection period each year based on sales.
ii. The inventory turnover, and the payables period each year based on cost of goods sold.
iii. The days' sales in cash each year.
iv. The gross margin and profit margin each year.
c. What do these calculations suggest about the company's performance?

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Year 1 Year 2 Sales Cost of goods sold Net income Cash flow from operations Balance Sheet Cash Marketable securities Accounts receivable Inventories $ 271,161 249,181 (155,034) (58,405) $ 457,977 341,204 403,509) (20,437) 341,180 341,762 21,011 6,473 $ 710,427 $ 28,908 44,310 S 73,218 268,872 36,900 35,298 72,106 S 413,176 Total current assets Accounts payable Accrued liabilities S 22,758 124,851 S 147,610 Total current liabilities