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Robbins Ltd. is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the three year period 2018

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Robbins Ltd. is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the three year period 2018 to 2020. The firm's total assets at the end of 2017 amounted to $850,000. The president of Robbins Ltd. has asked the controller to prepare a report that summarizes the financial aspects of the company's operations for the past three years. This report will be presented to the board of directors at their next meeting. In addition to comparative financial statements, the controller has decided to present a number of relevant financial ratios that can help with identifying and interpreting trends. At the request of the controller, the accounting staff has calculated the following ratios for the 2018-2020 period: 2018 2019 2020 1.80 1.89 1.96 Current ratio Acid-test (quick) ratio 1.04 0.99 0.87 7.71 6.42 8.75 Accounts receivable turnover 4.91 4.32 3.72 Inventory turnover 51.0 % 46.0 % 41.0 % Debt to total assets 31.0 % 27.0 % 240 % Long-term debt to total assets 1.58 1.69 1.79 Sales to fixed assets (fixed asset turnover) Accounts receivable wer 4.91 4.32 3.72 Inventory turnover 510 % 46.0 % 41.0 % 31.0 % 27.0 % 24.0 % 1.58 1.69 1.79 Debt to total assets Long-term debt to total assets Sales to fixed assets (fixed asset turnover) Sales as a percent of 2018 sales Gross margin percentage Net income to sales (profit margin) Return on total assets 1.00 1.03 1.05 36.0 % 35.1 % 34.6 96 6.9 96 7.0 % 7.2 % 7.7 % 7.7 % 7.8 % 13.6 % 13.1 % 12.7 % Return on equity In preparation of the report, the controller has decided first to examine the financial ratios independent of any other data to determine if the ratios themselves reveal any significant trends over the three-year period. Using the ratios provided, what conclusion(s) can be drawn regarding the company's net investment in plant and equipment? IN 11 M E B 1 y T IEEE 2 O Word(s) e Textbook and Media Using the activity ratios provided for inventory and accounts receivable, comment on the effectiveness of working capital management For each year, calculate the current ratio, quick ratio, and days payables outstanding ratio. (Round answers to 2 decimal places, eg 5275%. Use 365 days for calculation) 2022 2021 2020 Current ratio Quick ratio Days payable outstanding days days

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