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.) Data table Data table Data table Selected balance sheet data 2021 2020 2019 2018 Furniture industry averages Selected income statement data 2021 2020 2019 2018 Cash Marketable securities $ 2,900 $ 3,000 $ 3,900 Current ratio 1.9 900 1,200 800 Net sales revenue (assume all sales are credit sales) S 40,100 $ 39,000 $ 38,500 $ 36,700 Quick ratio 1.0 Accounts receivable, net 6,800 6,500 5,700 $ 5,200 Cost of goods sold 21,200 17,390 15,570 Days' inventory outstanding 71.1 Inventory 6,400 4,900 3,100 2,800 Operating expenses 10,900 12,100 12,600 Days' sales outstanding 54.7 Total current assets 17,000 15,600 Interest expense 275 330 355 13,500 Long-term assets 7,500 7,800 9,100 Income taxes 395 1,164 1,229 Days' payable outstanding Debt ratio 22.1 60% Total assets 24,500 23,400 22,600 Accounts payable 2,900 1,400 1,000 1,400 Requirements Short-term notes payable 6,300 5,800 5,450 Times-interest-earned ratio Gross margin percentage Operating income percentage 32.2 58% 24% Total current liabilities 11,900 9,700 8,000 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