(Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: Need Help ASAP!

(Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,400 67,200 114,000 433,000 235,000 $872,600 $19,800 58,000 145,000 451,000 212,000 $885,800 $27,200 144,500 236,000 512,000 267,600 $1,187,300 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $109,000 206,000 523,000 34,600 $872,600 $54,500 256,000 523,000 52,300 $885,800 $109,000 512,000 523,000 43,300 $1,187,300 Statement of Earnings Sales Cost of goods sold Other expenses $600,000 (336,000) (166,000) 98,000 (29,400) $68,600 $840,000 (571,200) (225,000) 43,800 (13,140) $30,660 $925,000 (693,750) (223,000) 8,250 (2,475) $5,775 Income tax Net income Your answer is partially correct. Your answer is partially correct. Based on above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2018 to 2020. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.) 2018 2019 2020 ales 100.0 % 100.0 % 100.0 % Cost of goods sold 56.0 i % 68.0 i % 75.0 i % Gross margin 44.0 i % 32.0 i % 25.0 i % Other expenses 27.7 % 26.8 % 24.1 i ncome taxes 4.9 % 1.6 i % 0.3 i % Net income 11.4 % 3.7 % 0.6 % 2018 2019 2020 Current Ratio 1.9 :1 4.1 :1 Quick Ratio 0.8 :1 1.4 :1 A/R Turnover times 3.4 times Average Collection Period days 109.0 days 16 Inventory Turnover times 1.1 times Days to Sell Inventory days 331.8 days 40 - Your answer is partially correct. Based on the above information, analyze the company's use of leverage from 2018 to 2020. (Round answers to 1 decimal place, e.g. 15.1%.) 2018 2019 2020 Debt to Equity 0.6 % 0.5 % 1.1 % Return on Assets 7.9 % 3.5 % 0.50 % Return on Equity 12.3 % 5.3 % 1.0 %