Question 4 (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $22,800 $19,300 $27,500 66,900 58,500 149,000 114,000 147,000 222,000 460,000 235,000 201,000 266,800 $858,700 $893,800 $1,125,300 420,000 468,000 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $115,000 $57,500 $115,000 180,000 230,000 460,000 512,000 512,000 512,000 38,300 $858,700 $893,800 $1,125,300 51,700 94,300 Statement of Earnings Sales Cost of goods sold Other expenses $650,000 $755,000 $975,000 (377,000) (513,400) (682,500) (164,000) (225,000) (223,000) 69,500 (32,700) (4,980) (20,850) $76,300 $11,620 $48,650 109,000 16,600 Income tax Net income Based on above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2018 to 2020. (Round answers to 1 decimal place, e.g. 13.59% or 13.5) (al) Sales Cost of gaods sold Gross margin Other expenses Income taxes 9% Net income Current Ratio Quick Ratio A/R Turnover Average Collection Periad Inventory Turnover Days to Sell Inventory times days times days times times days times days days