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

Question: Based on the above information, analyze the companys use of leverage from 2018 to 2020. (Round answers to 1 decimal place, e.g. 15.1%.) Please solve for the Debt to Equity section

(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 $23,500 $19,600 $25,500 Accounts receivable 67,400 50,000 145,000 Inventory 115,000 137,000 238,000 Capital assets (net) 422,000 452,000 492,000 Other assets 230,000 209,000 267,000 $857,900 $867,600 $1,167,500 Liabilities and equity Accounts payable $105,000 $52,500 $105,000 Long-term debt 196,000 246,000 492,000 Common shares 510,000 510,000 510,000 Retained earnings 46,900 59,100 60,500 $857,900 $867,600 $1,167,500 Statement of Earnings Sales $690,000 $780,000 $910,000 Cost of goods sold (448,500) (526,500) (637,000) Other expenses (166,000) (238,000) (236,000) 75,500 15,500 37,000 Income tax (22,650) (4,650) (11,100) Net income $52,850 $10,850 $25,900 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 54.1 % 52.5 % 104.7 % Return on Assets 6.2 % 1.3 % 2.6 % Return on Equity 9.5 % 1.9 % 4.5 %