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			times
Average Collection Period			days			days			days
Inventory Turnover			times			times			times
Days to Sell Inventory			days			days			days

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		%		%		%

(Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings Statement of Earnings Sales Cost of goods sold Other expenses Income tax Net income 2018 $22,300 67,400 113,000 425,000 235,000 $862,700 $117,000 184,000 517,000 44,700 $862,700 2019 $19,200 58,500 139,000 455,000 205,000 $876,700 $58,500 234,000 517,000 67,200 $876,700 $700,000 $815,000 (434,000) (554,200) (160,000) (235,000) 106,000 25,800 (31,800) (7,740) $74,200 $18,060 2020 $25,100 149,500 224,000 468,000 265,200 $1,131,800 $117,000 468,000 517,000 29,800 $1,131,800 $915,000 (640,500) (233,000) 41,500 (12,450) $29,050