Requirement 1 . Perform a trend analysis on Trentonin sales tevenue, imventor, and focervabies over the past throe years, using 2018 as the base, Is the trand in oach of these areas favorable or unfavorable for the company? \begin{tabular}{l|l|l|l|l|l|} \hline & 2021 & 2020 & 2019 & 2018 \\ \hline \begin{tabular}{l} Net sales revenue \\ Inventory \end{tabular} & - & & \\ \hline \end{tabular} Is the bend in each of these weas tworable or untworabie tor the coparany? fin ret reciviales is than the increase insales, which is irend. pityment ability, and d) proftrability 2. Siar by analying the liqudty rabos: the currect rate and the quck nitio: 2001 200 rint Next Next, select the formula and enter the amounts to calculate the quick (acid-tost) ratios for the years 2019 through 2021 (Abbreviations usod Cash* = cash and cash equivalet stockholders' equity, and ST = short term. Round the ratios to two decimal places, XX ) b. Analyze the tumover ratios imontory turnover and days' inventory cutstandine, accounts roceivatile tumover, days 'sales outstanding accounts paysblo turnovor drya' payabies outstanding, and cash cortvorsion cycle. Select the formula and enter the amounts to calculate the inventory tumover for the yoans 2019 trough 2021 (Round the ratios fo tho decimal Piscen XXX) Read the requirements. 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) Select the formula and enter the amounts to calculate days' invertory outanding (DiO) for the years 2019 through 2021 . (Enter formula ratios to two decimal places, XX ) a 365 -day year Round the DIO to one decimal piace, X.X.) Select the formula and enter the amounts to calculate the accounts roceivable farnover for the years 2019 through 2021 . (Round the fatios to two decimal placos, XXX ) c. Analyze the ability to pay long-term debt: debt tatio and times-interest-eamed ratso. Select the formula and enter the amounts to calculate the debt ratios for the years 2019 through 2021 . (Enter the ratios in decima: form (nor as percentages) to two o xx) d. Anvilyze the proftability ratics: gross margin percentage and operating income percentago. Now, using the industry arorages as benchmarks, andlyze Trencon's performarce ower the past three years. Overal, Treoton's pedformance over the past three yeas looks and conpiru fawonbly to the indistry averages. Most al the ratlos showed over the thice yeas Trentoris perfomance over the past thee years are due to: (5elect all that appiy) A. Increasing debt nutio B. Decliving exrings C. Inability to coliect accounts rocuivable b. Buidup of imertaries f. Oporating incame percentages ave decreasing F. Iroponed accounts recenatile turvover H. improved interest conerage 1. Oecremind camb fow 3. Increasing long-term fiabilities K. Decreasing gross margin Requirement 3. Evaluate Trenton's quality of earnings. Are there any red flags in your analysis? Explain. Refor to the quality of earrings tatios you calculated in Requirements 2 and 3 and evaluate Trentoris quelty of eamings. Are thone any red flags in your anulysis? Explain Au the ratios are Quality of earrings is Data table equirement 2. Using the industry averages as benchmaks, analyze Trenton's performance over the pagt three years in the foliowing aveas a) ayment ability, and d) profitability. Start by analyzing the liquidity ratios: the current ratio and the quick rasio Data table
