Requirement 1. Perform a trend analysis on Tapping's sales revenue, inventory, and receivables over the past three years, using 2018 as the base. Is the trend in cach of these arcas favorable or unfavorable for the company? Begin by calculating the trend analysis (Round the ratios to the nearest whole percent. X%) 2021 2020 2019 2018 Net sales revenue % % % % Inventory % % % % Accounts receivable, net % % % Is the trend in each of these areas favorable or unfavorable for the company? in inventory indicates a The trend percentages for sales revenue is percentage v in net receivables is The trend The trend percentage V than the increase in sales, which is V trend. Requirement 2. Using the industry averages as benchmarks, analyze Tapping's performance over the past three years in the following areas. a) liquidity, b) turnover, c) overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios the current ratio and the quick ratio Select the formula and enter the amounts to calculate the current ratios for the years 2019 through 2021. (Round the ratios to two decimal places, XXX.) Current rain a. Start by analyzing the liquidity ratios the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2019 through 2021 (Round the ratios to two decimal places, X.XX.) Current ratio 2021 = 2020 2019 Next, select the formula and enter the amounts to calculate the quick (acid-test) ratios for the years 2019 through 2021. (Abbreviations used: Cash* = cash and cash equivalents, SE = stockholders' equity, and ST = short-term. Round the ratios to two decimal places, XXX) ) Quick ratio 2021 ) - = 2020 ( + ) - = 2019 + b. Analyze the turnover ratios inventory turnover and days' inventory outstanding, accounts receivable turnover days' sales outstanding, accounts payable turnover, days' payables outstanding, and cash conversion cycle Select the formula and enter the amounts to calculate the inventory turnover for the years 2019 through 2021. (Round the ratios to two decimal places, X.XX.) Inventory turnover Select the formula and enter the amounts to calculate the inventory turnover for the years 2019 through 2021. (Round the ratios to two decimal places, XXX) Inventory tumover 2021 2020 2019 Select the formula and enter the amounts to calculate days' inventory outanding (DIO) for the years 2019 through 2021. (Enter formula ratios to two decimal places, X.XX Use a 365-day year. Round the Dio to one decimal place, XX) Days' inventory outstanding (DIO) 2021 2020 2019 Select the formula and enter the amounts to calculate the accounts receivable turnover for the years 2019 through 2021 (Round the ratios to two decimal places, XXX) Accounts receivable turnover 2021 2020 LU 2020 2019 Select the formula and enter the amounts to calculate days' sales outanding (DSO) for the years 2019 through 2021. (Use a 365-day year Round the DSO to one decimal place, XX) Days' sales outstanding (DSO) 2021 2020 - 2019 Select the formula and enter the amounts to calculate the accounts payable turnover for the years 2019 through 2021 (Round the ratios to two decimal places, XXX) Accounts payable turnover 2021 2020 - 2019 Select the formula and enter the amounts to calculate days payables outanding (DPO) for the years 2019 through 2021 (Use a 365-day year Round the DPO to one decimal place, XX.) Select the formula and enter the amounts to calculate days payables outanding (DPO) for the years 2019 through 2021. (Use a 365-day year Round the DPO to one decimal place, XX) Days payables outstanding (DPO) 2021 2020 2019 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2019 through 2021. (Enter all amounts to one decimal place, X.X.) + Cash conversion cycle 2021 + 2020 + 2019 c. Analyze the ability to pay long-term debt debt ratio and times-interest-eamed ratio. Select the formula and enter the amounts to calculate the debt ratios for the years 2019 through 2021 (Enter the ratios in decimal form (not as percentages] to two decimal places, XXX) Debt ratio 2021 ---------- --- Debt ratio 2021 2020 2019 Select the formula and enter the amounts to calculate the times-interest-earned ratios for the years 2019 through 2021. (Round the ra XX.) Times-interest-earned ratio 2021 2020 2019 d. Analyze the profitability ratios gross margin percentage and operating income percentage Select the formula and enter the amounts to calculate the gross margin (gross profit) percentages for the years 2019 through 2021. (R of a percent, XX%) Gross margin % 2021 % 2020 over une three years Tapping's performance over the past three years are due to: (Select all that apply.) DA. Operating income percentages are decreasing B. Declining earnings C. Improved accounts receivable turnover D. Decreased cash flow E. Increasing debt ratio F. Decreasing gross margin O G. Payment of accounts payable is getting faster DH. Improved interest coverage 1. Inability to collect accounts receivable J. Buildup of inventories C K. increasing long-term liabilities Requirement 3. Evaluate Tapping's quality of earnings. Are there any red flags in your analysis? Explain. First, select the formula and enter the amounts to calculate the net income percentage ratios for years 2019 through 2021. (Round the ratios to one-tenth percent, X.X%) = Net income % 2021 % 2020 Il 11 11 = % 2019 % Refer to the quality of earnings ratios you calculated in Requirements 2 and 3 and evaluate Tapping's quality of earnings. Are there any red flags in your analysis? Explain. All the ratios are Quality of earnings is - Data table Data table X Selected balance sheet data 2021 2020 Furniture industry averages Current ratio 2019 2018 Cash 21 $ 2,900 $ 3 400 $ 4.400 Quick ratio 1.0 600 700 600 Marketable securities Accounts receivable net Inventory 873 7,100 6,600 Days' inventory outstanding Days' sales outstanding Days payable outstanding 4.000 5 100 $ 4.300 46.6 6.800 5,300 4,000 26.9 Total current assets 17,400 16 000 14 400 Debt ratio 68% Long-term asses 7.400 7.700 8,000 17.1 Total assets 24,800 23,700 22,400 Times-interest-earned ratio Gross margin percentage Operating income percentage Accounts payable 51% 1.900 1.500 1,700 Short-term notes payable 18% 2.900 7,300 10,500 6,800 6,300 Total current liabilities 8,900 7,200 pe tent Total long term liabilities 380 1.940 6,403 Print Done Data table % and evaluate Tapping's quality of earnings Are there any rel Selected income statement data Net sales revenue (assume all sales are credit salos) Cost of goods sold Operating expenses 2018 37 200 $ 2021 2020 2019 39,300 $ 38,400 $ 38,100 $ 22.700 19 460 17.750 11.600 12 000 12 400 Interest expense 375 500 605 Income taxes 375 1,024 1,123 Requirement 1. Perform a trend analysis on Tapping's sales revenue, inventory, and receivables over the past three years, using 2018 as the base. Is the trend in cach of these arcas favorable or unfavorable for the company? Begin by calculating the trend analysis (Round the ratios to the nearest whole percent. X%) 2021 2020 2019 2018 Net sales revenue % % % % Inventory % % % % Accounts receivable, net % % % Is the trend in each of these areas favorable or unfavorable for the company? in inventory indicates a The trend percentages for sales revenue is percentage v in net receivables is The trend The trend percentage V than the increase in sales, which is V trend. Requirement 2. Using the industry averages as benchmarks, analyze Tapping's performance over the past three years in the following areas. a) liquidity, b) turnover, c) overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios the current ratio and the quick ratio Select the formula and enter the amounts to calculate the current ratios for the years 2019 through 2021. (Round the ratios to two decimal places, XXX.) Current rain a. Start by analyzing the liquidity ratios the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2019 through 2021 (Round the ratios to two decimal places, X.XX.) Current ratio 2021 = 2020 2019 Next, select the formula and enter the amounts to calculate the quick (acid-test) ratios for the years 2019 through 2021. (Abbreviations used: Cash* = cash and cash equivalents, SE = stockholders' equity, and ST = short-term. Round the ratios to two decimal places, XXX) ) Quick ratio 2021 ) - = 2020 ( + ) - = 2019 + b. Analyze the turnover ratios inventory turnover and days' inventory outstanding, accounts receivable turnover days' sales outstanding, accounts payable turnover, days' payables outstanding, and cash conversion cycle Select the formula and enter the amounts to calculate the inventory turnover for the years 2019 through 2021. (Round the ratios to two decimal places, X.XX.) Inventory turnover Select the formula and enter the amounts to calculate the inventory turnover for the years 2019 through 2021. (Round the ratios to two decimal places, XXX) Inventory tumover 2021 2020 2019 Select the formula and enter the amounts to calculate days' inventory outanding (DIO) for the years 2019 through 2021. (Enter formula ratios to two decimal places, X.XX Use a 365-day year. Round the Dio to one decimal place, XX) Days' inventory outstanding (DIO) 2021 2020 2019 Select the formula and enter the amounts to calculate the accounts receivable turnover for the years 2019 through 2021 (Round the ratios to two decimal places, XXX) Accounts receivable turnover 2021 2020 LU 2020 2019 Select the formula and enter the amounts to calculate days' sales outanding (DSO) for the years 2019 through 2021. (Use a 365-day year Round the DSO to one decimal place, XX) Days' sales outstanding (DSO) 2021 2020 - 2019 Select the formula and enter the amounts to calculate the accounts payable turnover for the years 2019 through 2021 (Round the ratios to two decimal places, XXX) Accounts payable turnover 2021 2020 - 2019 Select the formula and enter the amounts to calculate days payables outanding (DPO) for the years 2019 through 2021 (Use a 365-day year Round the DPO to one decimal place, XX.) Select the formula and enter the amounts to calculate days payables outanding (DPO) for the years 2019 through 2021. (Use a 365-day year Round the DPO to one decimal place, XX) Days payables outstanding (DPO) 2021 2020 2019 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2019 through 2021. (Enter all amounts to one decimal place, X.X.) + Cash conversion cycle 2021 + 2020 + 2019 c. Analyze the ability to pay long-term debt debt ratio and times-interest-eamed ratio. Select the formula and enter the amounts to calculate the debt ratios for the years 2019 through 2021 (Enter the ratios in decimal form (not as percentages] to two decimal places, XXX) Debt ratio 2021 ---------- --- Debt ratio 2021 2020 2019 Select the formula and enter the amounts to calculate the times-interest-earned ratios for the years 2019 through 2021. (Round the ra XX.) Times-interest-earned ratio 2021 2020 2019 d. Analyze the profitability ratios gross margin percentage and operating income percentage Select the formula and enter the amounts to calculate the gross margin (gross profit) percentages for the years 2019 through 2021. (R of a percent, XX%) Gross margin % 2021 % 2020 over une three years Tapping's performance over the past three years are due to: (Select all that apply.) DA. Operating income percentages are decreasing B. Declining earnings C. Improved accounts receivable turnover D. Decreased cash flow E. Increasing debt ratio F. Decreasing gross margin O G. Payment of accounts payable is getting faster DH. Improved interest coverage 1. Inability to collect accounts receivable J. Buildup of inventories C K. increasing long-term liabilities Requirement 3. Evaluate Tapping's quality of earnings. Are there any red flags in your analysis? Explain. First, select the formula and enter the amounts to calculate the net income percentage ratios for years 2019 through 2021. (Round the ratios to one-tenth percent, X.X%) = Net income % 2021 % 2020 Il 11 11 = % 2019 % Refer to the quality of earnings ratios you calculated in Requirements 2 and 3 and evaluate Tapping's quality of earnings. Are there any red flags in your analysis? Explain. All the ratios are Quality of earnings is - Data table Data table X Selected balance sheet data 2021 2020 Furniture industry averages Current ratio 2019 2018 Cash 21 $ 2,900 $ 3 400 $ 4.400 Quick ratio 1.0 600 700 600 Marketable securities Accounts receivable net Inventory 873 7,100 6,600 Days' inventory outstanding Days' sales outstanding Days payable outstanding 4.000 5 100 $ 4.300 46.6 6.800 5,300 4,000 26.9 Total current assets 17,400 16 000 14 400 Debt ratio 68% Long-term asses 7.400 7.700 8,000 17.1 Total assets 24,800 23,700 22,400 Times-interest-earned ratio Gross margin percentage Operating income percentage Accounts payable 51% 1.900 1.500 1,700 Short-term notes payable 18% 2.900 7,300 10,500 6,800 6,300 Total current liabilities 8,900 7,200 pe tent Total long term liabilities 380 1.940 6,403 Print Done Data table % and evaluate Tapping's quality of earnings Are there any rel Selected income statement data Net sales revenue (assume all sales are credit salos) Cost of goods sold Operating expenses 2018 37 200 $ 2021 2020 2019 39,300 $ 38,400 $ 38,100 $ 22.700 19 460 17.750 11.600 12 000 12 400 Interest expense 375 500 605 Income taxes 375 1,024 1,123