P14.4A (LO2,3,4) 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) Pronghorn Ltd. Statement of Income Year Ended December 31 (in thousands) \begin{tabular}{|l|r|r|r|} \hline & 2021 & 2020 & 2019 \\ \hline Sales & $4,500 & $4,000 & $3,600 \\ \hline \end{tabular} a. Calculate the receivables turnover ratio, inventory turnover ratio, and current ratio for all three years. Assume that the accounts receivable and inventory balances at the end of 2018 were equal to the balances at the end of 2019 . The company does not have an allowance for doubtful accounts and all sales are on credit. 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. b. Calculate the gross profit margin for each year. 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 this ratio? c. Calculate the profit margin ratio. Why has this ratio changed over the three years? Incorporate in your answer any conclusions you made when analyzing the gross profit margin in part (b) above. d. Calculate the debt to total assets ratio and the times interest earned ratio for all three years. What strategy pertaining to leverage has the company pursued? Is the company more or less solvent in 2021 than it was in 2019 ? e. The company paid all dividends as soon as they were declared and has only issued common shares. Retained earnings at the beginning of 2019 were \$1.3 million. Calculate the cash dividends declared and dividend payout ratio for each year. Why has the payout ratio changed? Do you think that the dividend payout has affected the company's liquidity? Why or why not? f. Calculate the asset turnover for each of the three years. Assume that total assets at the end of 2018 were equal to total assets at the end of 2019 . Multiply the asset turnover for each year by the profit margin for that year from part (c) above to determine the return on assets for each year. What is the major driver of the company's return on assets? g. Calculate the return on common shareholders' equity for each year. 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? Calculate and evaluate ratios