(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 $23,200 66,700 109,000 428,000 240,000 $866,900 $20,900 53,000 134,000 452,000 209,000 $868,900 $25,200 142,500 238,000 468,000 268,900 $1,142,600 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $119,000 184,000 523,000 40,900 $866,900 $59,500 234,000 523,000 52,400 $868,900 $119,000 468,000 523,000 32,600 $1,142,600 Statement of Earnings Sales Cost of goods sold Other expenses $645,000 (412,800) (165,000) 67,200 (20,160) $47,040 $810,000 (550,800) (224,000) 35,200 (10,560) $24,640 $930,000 (669,600) (222,000) 38,400 (11,520) $26,880 Income tax Net income 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 Sales % 25.6 % 14.8 % Cost of goods sold % 33.4 % 21.6 % Gross margin % % % Other expenses % 35.8 % -1.8 % Income taxes % -47.6 % 9.1 % Net income % -47.6 % 9.1 % 2018 2019 Current Ratio 1.7 :1 3.5 :1 Quick Ratio 0.8 :1 1.2 :1 A/R Turnover 10.8 times 8.3 times Average Collection Period 33.8 days 44.0 days Inventory Turnover 3.4 times 3.0 times Days to Sell Inventory 107.4 days 121.7 days