Selected data from Tang Furniture, Inc., follows. Selected balance sheet data 2021 2020 2019 2018 Cash $ 3,500 $ 3,700 $ 5,200 1,200 1,600 1,300 5,400 $ 7,000 6,700 Marketable securities Accounts receivable, net Inventory Total current assets 4,300 2,800 6,900 4,800 3,000 18,600 16,800 14,900 Long-term assets 7,500 7,800 8,800 Total assets 26,100 24,600 23,700 3,600 2,100 1,800 2,500 Accounts payable Short-term notes payable 7,000 6,500 5,800 Total current liabilities 11,300 9,100 7,100 Total long-term liabilities 380 2,955 7,574 2018 Selected income statement data 34,000 Net sales revenue (assume all sales are credit sales) $ Cost of goods sold 2021 2020 2019 36,200 $ 35,500 $ 34,400 $ 20,200 16,390 14,280 12,800 14,000 14,700 Operating expenses 255 Interest expense 270 355 445 Income taxes 1,094 1,153 Furniture industry averages Current ratio 2.1 Quick ratio 1.0 75.2 Days' inventory outstanding Days' sales outstanding Days' payable outstanding 53.5 43.0 53.5 Days sales outstanding Days' payable outstanding Debt ratio 43.0 60% Times-interest-earned ratio 16.3 Gross margin percentage 57% Operating income percentage 14% 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