(Liquidity and profitability analysis) Superior Kitchens and Bathrooms Ltd. is a small business that sells kitchen and bathroom fixtures and accessories and also does design and installation. The business was started three years ago by Qing Liu. Initially the companys operations consisted of kitchen and bathroom renovations for individual homes. In 2019, the company started providing design and installation services to local contractors to expand sales. As the contractor side of the business grew in 2020, the company purchased a truck for deliveries. All sales to individuals are cash on delivery, but for contracting jobs, customers are invoiced and are offered 30-day payment terms. The companys suppliers offer terms of 30 days. Selected financial information for Superior Kitchens and Bathrooms Ltd. follows.

		2020		2019
Assets
Cash		$12,222		$4,588
Accounts receivable		19,788		13,024
Inventory		15,326		8,436
Land		21,000		21,000
Building and equipment		62,400		53,000
Total assets		$130,736		$100,048
Liabilities and equity
Accounts payable		$13,200		$11,200
Short-term note payable		2,600		0
Mortgage payable current		3,600		3,600
Mortgage payable		32,400		36,000
Share capital		16,900		16,200
Retained earnings		62,036		33,048
Total liabilities and equity		$130,736		$100,048
Other information
Sales		$262,000		$219,000
Cost of goods sold		153,008		116,946
Net income		28,988		9,800

Assume the growth in sales in 2020 is primarily from the contracting business. Calculate the gross margins and the profit margins. (Round answers to 1 decimal place, e.g. 15.1%.)

		2020		2019
Gross margin		Enter appropriate percentage. %		Enter appropriate percentage. %
Profit margin		Enter appropriate percentage. %		Enter appropriate percentage. %

Calculate the companys current ratio and quick ratio for both years. (Round answers to 2 decimal places, e.g. 1.84.)

		2020		2019
Current ratio		Enter appropriate ratio. times		Enter appropriate ratio. times
Quick ratio		Enter appropriate ratio. times		Enter appropriate ratio. times

Calculate the companys accounts receivable turnover ratio for 2020. How quickly is the company collecting its receivables? (Round answers to 1 decimal place, e.g. 18.4.)

		2020
Accounts receivable turnover		Enter appropriate ratio. times
Average collection period		Enter appropriate days. days

Assume that 50% of the sales come from the contracting business and recalculate the accounts receivable turnover for 2020. (Round answers to 1 decimal place, e.g. 18.4.)

		2020
Accounts receivable - contracting turnover		Enter appropriate ratio. times
Average collection period		Enter appropriate days. days

Calculate the companys inventory turnover ratio for 2020. (Round answers to 1 decimal place, e.g. 18.4.)

		2020
Inventory turnover		Enter appropriate ratio. times

Calculate the companys accounts payable turnover ratio for 2020. (Round answers to 1 decimal place, e.g. 18.4.)

		2020
Accounts payable turnover		Enter appropriate ratio. times