Accounting:

(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 $22,500 $19,600 $27,900 68,500 56,000 143,000 115,000 143,000 227,000 431,000 463,000 520,000 237,000 207,000 268,700 $874,000 $888,600 $1,186,600 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $116,000 $58,000 $116,000 210,000 260,000 520,000 518,000 518,000 518,000 30,000 52,600 32,600 $874,000 $888,600 $1,186,600 Statement of Earnings Sales Cost of goods sold Other expenses $660,000 $755,000 (389,400) (505,850) (163,000) (228,000) 107,600 21,150 (32,280) (6,345) $75,320 $14,805 $915,000 (649,650) (226,000) 39,350 (11,805) $27,545 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. 13.5% or 13.5.) 2018 2019 2020 Sales % % % Cost of goods sold % % % Gross margin % % % Other expenses % % % Income taxes % % % Net income % % % 2018 2019 2020 Current Ratio 1 :1 :1 Quick Ratio :1 :1 :1 A/R Turnover times times tim Average Collection Period days days day Inventory Turnover times times tim Days to Sell Inventory days days day Based on the above information, analyze the company's use of leverage from 2018 to 2020. (Round answers to 1 decimal place, e.g. 15.1%.) 2018 2019 2020 Debt to Equity % % % Return on Assets % % % Return on Equity % % %