AP6-14A (Analysis using selected ratios) HomeStar Ltd. is a chain of retail hardware stores with total assets of $2.5 billion. Selected financial ratios for HomeStar are as follows: 2024 2023 2022 Current ratio 2.35 2.38 2.39 Quick ratio 0.56 0.51 0.58 Inventory turnover 5-57 5-33 5.27 Debt to equity ratio 0.68 0.87 0.86 Return on assets 7.3% 9.0% 9.8% Gross margin 7.71% 8.36% 8.73% Profit margin 3.28% 3.87% 4.19% Return on equity 11.4% 15.1% 16.8% In 2022, HomeStar was affected by a decline in the demand for home hardware items and the entry of a major U.S. chain into the market. Required 1. Briefly discuss what these financial ratios indicate about how HomeStar was affected by the events of 2022. 2. Which measures have deteriorated during the subsequent periods? 3. Which ratios indicate positive action taken by HomeStar during the subsequent periods