Based on the financial data of PharmaCo for the years ended December 31, 2023, 2022, and 2021, answer the following questions:

PharmaCo Comparative Income Statements for Years Ended December 31, 2023, 2022, and 2021:

• Sales: 2023: $4,000,000, 2022: $3,500,000, 2021: $3,000,000
• Cost of Goods Sold: 2023: $1,600,000, 2022: $1,400,000, 2021: $1,200,000
• Gross Profit: 2023: $2,400,000, 2022: $2,100,000, 2021: $1,800,000
• Operating Expenses: 2023: $800,000, 2022: $700,000, 2021: $600,000
• Net Income: 2023: $1,000,000, 2022: $900,000, 2021: $800,000

PharmaCo Comparative Balance Sheets as of December 31, 2023, 2022, and 2021:

• Total Assets: 2023: $5,000,000, 2022: $4,500,000, 2021: $4,000,000
• Total Liabilities: 2023: $2,000,000, 2022: $1,800,000, 2021: $1,600,000
• Shareholders' Equity: 2023: $3,000, 2022: $2,700,000, 2021: $2,400,000

Requirements:

1. Calculate the gross profit margin for each year.
2. Compute the return on equity (ROE) for each year.
3. Determine the net profit margin for each year.
4. Calculate the quick ratio for 2023 if current assets are $2,200,000 and inventory is $1,000,000.
5. Discuss the trend in profitability and liquidity over the three years.