(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 $23,800 $26,100 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $20,500 56,000 67,400 146,000 120,000 130,000 469,000 221,000 512,000 433,000 234,000 204,000 266,500 $878,200 $879,500 $1,171,600 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $110,000 206,000 514,000 $55,000 256,000 514,000 $110,000 512,000 514,000 48,200 54,500 35,600 $878,200 $879,500 $1,171,600 Statement of Earnings Sales Cost of goods sold Other expenses $625,000 (343,750) $845,000 (566,150) $895,000 (635,450) (228,000) (162,000) (230,000) 119,250 48,850 31,550 (35,775) (14,655) (9,465) Income tax Net income $83,475 $34,195 $22,085 (21) 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 % % % Cost of goods sold % % % Gross margin % % % Other expenses % % % Income taxes % % % Net income % % % 2018 2019 202 Current Ratio : 1 :1 Quick Ratio :1 :1 A/R Turnover times times Average Collection Period days days Inventory Turnover times times Days to Sell Inventory days days (a1) 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 % % ok Cost of goods sold % % % Gross margin % % % Other expenses % % % Income taxes % % % Net income % % % 2018 2019 2020 : 1 :1 :1 : 1 :1 : 1 times times times ion Period days days days ver times times times intory days days days