Selected data from Tang Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements. Data table (Click the icon to view selected income statement data.) Data table Data table Selected balance sheet data Cash 2021 2020 2019 2018 2,900 $ 3,000 $ 3,900 Selected income statement data 2021 2020 2019 2018 Furniture industry averages Marketable securities 900 1,200 800 Accounts receivable, net 6,800 6,500 5,700 $ 5,200 Net sales revenue (assume all sales are credit sales) Cost of goods sold 40,100 $ 39,000 $ 38,500 $ 36,700 Current ratio 1.9 21,200 17,390 15,570 Quick ratio 1.0 Inventory 6,400 4,900 3,100 2,800 Operating expenses 10,900 12,100 12,600 Days' inventory outstanding 71.1 Total current assets 17,000 15,600 13,500 Interest expense 275 330 355 Days' sales outstanding 54.7 Long-term assets 7,500 7,800 9,100 Income taxes 395 1,164 1,229 Total assets 24,500 23,400 22,600 Days' payable outstanding Debt ratio 22.1 60% Accounts payable 2,900 1,400 1,000 1,400 Times-interest-earned ratio 32.2 Short-term notes payable 6,300 5,800 5,450 Requirements Gross margin percentage 58% Total current liabilities 11,900 9,700 8,000 Operating income percentage 24% Total long-term liabilities 380 2,570 7,085 Print Done 1. Perform a trend analysis on Tang's sales revenue, inventory, and receivables over the past three years, using 2018 as the base. Is the trend in each of these areas favorable or unfavorable for the company? 2. Using the industry averages as benchmarks, analyze Tang's performance over the past three years in the following areas: a. Liquidity c. Overall debt payment ability b. Turnover d. Profitability 3. Evaluate Tang's quality of earnings. Are there any red flags in your analysis? Explain. Print Done Selected data from Tang Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements. (Click the icon to view selected income statement data.) Requirement 1. Perform a trend analysis on Tang's sales revenue, inventory, and receivables over the past three years, using 2018 as the base. Is the trend in each of these areas 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 % % % %