Condensed statements of financial position and statement of income data for Pronghorn Ltd. are shown below: PRONGHORN LTD. Statement of Financial Position December 31 (in thousands) 2021 2020 2019 Assets Current assets Cash $30 $80 $200 Accounts receivable 900 700 500 Inventory 1,200 800. 500 Total current assets 2,130 1,580 1,200 Property, plant, and equipment (net) 4,100 3,800 3,200 Total assets $6,230 $5,380 $4,400 Liabilities and Shareholders' Equity Liabilities Current liabilities $600 $550 $500 2030 2.220 1.500 Current liabilities $600 $550 $500 Non-current liabilities 3,070 2,320 1,500 Total liabilities 3,670 2,870 2,000 Shareholders' equity Common shares 1,000 1,000 1,000 Retained earnings 1,560 1,510 1,400 Total shareholders' equity 2,560 2,510 2,400 Total liabilities and shareholders' equity $6,230 $5,380 $4,400 PRONGHORN LTD. Statement of Income Year Ended December 31 (in thousands) 2021 2020 2019 Sales $4,500 $4,000 $3,600 Cost of goods sold 2,500 2,100 1,800 Gross profit 2,000 1,900 1,800 Operating expenses 1,450 1,475 1,490 Gross pront 2,000 1,900 1,800 Operating expenses 1,450 1,475 1,490 Income from operations 550 425 310 Interest expense 190 130 70 Income before income tax 360 295 240 Income tax expense 90 75 60 Net income $270 $220 $180 Comment on whether the company's overall liquidity has improved or worsened over this three-year period and support your explanation by relating the results of the turnover ratios to the current ratio. 2021 2020 Receivables turnover 5.6 times Inventory turnover Current ratio 2019 7.2 times 6.7 times. 2.5 times 3.2 times. 3.6 times 3.6 1 2.9 :1 2.4 :1 BIT, TI H E3 99 B 10 = 4 The costs paid for inventory purchased from suppliers have changed little over the three years but there is significant competition in the industry. How has this affected the gross profit ratio? 2021 2020 2019 Gross profit margin 44.4% 47.5% 50.0% B I UTTI eTextbook and Media E " OWord(s) Why has the profit margin ratio changed over the three years? Incorporate in your answer any conclusions you made when analyzing the gross profit margin in part (b) above. 2021 2020 2019 Profit margin 6.0% 5.5% 5.0% BUT, TI EE E eTextbook and Media OWords more or less solvent in 2021 than it was in 2019? What strategy pertaining to leverage has the company pursued? Is the company more or less solvent in 2021 than it was in 2019? 2021 2020 2019 Debt to total assets 58.9 % 53.3 % 45.5% Times interest earned 2.9 times 3.3 times 4.4 times B 1 T T I eTextbook and Media El EE OWords) Why has the payout ratio changed? Do you think that the dividend payout has affected the company's liquidity? Why or why not? 2021 2020 2019 Dividends declared $220 $110 $80 Payout ratio 81.5 % 50.0 % 44.4 % wwww BUT, TIEE eTextbook and Media J OWords) CCALLUR BHUIYIEUN What is the major driver of the company's return on assets? 2021 2020 2019 Asset turnover 0.78 times 0.82 times 0.82 times Return on assets 4.7 % 4.5 % 4.1 % BIT, TIE eTextbook and Media E 99 Words Assume that common shareholders' equity at the end of 2018 was equal to the amount for 2019. Why is the return on common shareholders' equity different from the return on assets? Why does the difference between these two ratios change? 2021 2020 2019 Return on common shareholders' equity 10.7% 9.0% 7.5% BI UTTI E E eTextbook and Media W OWords)