• Picasso Company is a wholesale distributor of packaging equipment and supplies. The companys sales have averaged about $900,000 annuallv for the 3-vear period 2023-2025. The hrmstotal assets at the end of 2025 amounted to $850.000. The president of Picasso Company has asked the controller to prepare a report that summarizes the financial aspects of the companys operations for the past 3 years. This report will be presented to the board of directors at their next meeting. In addition to comparative financial statements, the controller has decided to present a number of relevant financial ratios which can assist in the identincation and interpretation of trends. At the request of the controller. the accounting stat has calculated the following ratios for the 3-year period 2023-2025. 2023 Current ratio 1.80 AcIa-test quIckratio 1.04 AccOunts receivable turnover 8.75 inventory turnover 4.91 Debts to assets ratio 51.0 % Long-term debt to assets ratio 31.0 % Sales to fixed assets (fixed asset turnover) ^ 58 Sales as a percent of 2023 sales 1.00 Gross margin percentage 36.0 % Net income to sales 6.9 % 2024 1.89 0.99 7.71 4.32 46.0 % 27.0 % 1 69 1.03 2025 1.96 0.87 6.42 3.42 41.0 % 24.0 % 1.79 1.07 35.1 % 34.6 % 7.0 % 7.2 %