Please answer the 7 questions below. Comment the problem

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? What is the major driver of the company's return on assets? 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. What strategy pertaining to leverage has the company pursued? Is the company more or less solvent in 2021 than it was in 2019? Liabilities and Shareholders' Equity Liabilities \begin{tabular}{|c|c|c|c|} \hline Current liabilities & $600 & $550 & $500 \\ \hline Non-current liabilities & 3,070 & 2,320 & 1,500 \\ \hline Total liabilities & 3,670 & 2,870 & 2,000 \\ \hline \multicolumn{4}{|l|}{ Shareholders' equity } \\ \hline Common shares & 1,000 & 1,000 & 1,000 \\ \hline Retained earnings & 1,560 & 1,510 & 1,400 \\ \hline Total shareholders' equity & 2,560 & 2,510 & 2,400 \\ \hline Total liabilities and shareholders' equity & $6,230 & $5.380 & $4,400 \\ \hline \end{tabular} PRONGHORN LTD. Statement of Income Year Ended December 31 (in thousands) \begin{tabular}{|c|c|c|c|} \hline & 2021 & 2020 & 2019 \\ \hline Sales & $4,500 & $4,000 & $3,600 \\ \hline Cost of goods sold & 2,500 & 2,100 & 1,800 \\ \hline Gross profit & 2,000 & 1,900 & 1,800 \\ \hline Operating expenses & 1,450 & 1,475 & 1,490 \\ \hline Income from operations & 550 & 425 & 310 \\ \hline Interest expense & 190 & 130 & 70 \\ \hline Income before income tax & 360 & 295 & 240 \\ \hline Income tax expense & 90 & 75 & 60 \\ \hline Net income & $270 & $220 & $180 \\ \hline \end{tabular} 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? Why has the payout ratio changed? Do you think that the dividend payout has affected the company's liquidity? Why or why not? Comment on whether the company's overall liquidity has improved or worsened over this three-year period and 5 upport your explanation by relating the results of the turnover ratios to the current ratio. PRONGHORN LTD. Statement of Financial Position December 31 (in thousands) 202120202019 Assets Current assets \begin{tabular}{lrrrr} Cash & $30 & $80 & $200 \\ Accounts receivable & 900 & 700 & 500 \\ Inventory & 1,200 & 800 & 500 \\ \cline { 2 - 2 } & 2,130 & 1,580 & 1,200 \\ Potal current assets & 4,100 & & 3,800 & 3,200 \\ \hline Total asserty, plant, and equipment (net) & $6,230 & $5,380 & $4,400 \\ \hline \end{tabular} Liabilities and Shareholders' Equity