Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. Industry averages have been gathered for several ratios. Ell (Click the ican to view the ratios.) Read the requirements (click the icon to view selected income statement cata) Requirements Requirement 1. Perform a trend analysis on Thompsan's s h of these areas favorable or unfavorable for the company? Begin by calculating the trend analysis. (Round the ratios to 2018 201 1. Perform a trend analysis on Thompson's sales revenue, inventory, and receivables over the past three years, using 2015 as the base. Is the trend in each of these areas favorable or unfavorable for the company? Net sales revenue 9% 2. Using the industry averages as benchmarks, analyze Thompson's performance over the past three years in the fc lowing areas: a. Liquidity Overall debt payment abi ity b. Turnover d. Profitability Accounts receivable, net Is the trend in each of these areas favorable or unfavorable The trend percentages for sales revenue is ncrease in sales, which is Requirement 2. Using the industry averages as benchmarks a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2015 through 2018. (Round the ratios to two decimal places, X.xx.) 3. Evaluate Thompson's quality of earnings. Are there any red flags in your analysis? Explain. ntage in netreceivables is than the trend. Print Done c) overall deot payment ability, and d) profitability Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. EEB (Click the icon to view selected balance sheet data.) Industry averages have been gathered for several ratios.Data Table EEB (Click the icon to view the ratios.) Read the requirements. 2016 4,700 700 Selected balance sheet data Cash. Marketable securities Accounts receivable, net Inventory Total current assets Long-term assets Total assets Accounts payable Short-term notes payable Total current liabilities. Total long-term liabilities 2018 2017 2015 Requirement 1. Perform a trend analysis on Thompson's these areas favorable or unfavorable for the company? $3,400 $3,800 $ Begin by calculating the trend analysis. (Round the ratios 500 800 2018 7,500 7,000 5,100$4,000 Net sales revenue 6,400 500 000 3,900 17,800 17,400 14,500 7,600 8,900 25,100 25,000 23,400 1,400 4,750 7,000 7,579 Accounts receivable, net 7,300 Is the trend in each of these areas favorable or 3,100 2,500 6,300 5,100 11,000 8,200 3,220 2,500 The trend percentages for sales revenue is ncrease in sales, which is Requirement 2. Using the industry averages as h a. Start by analyzing the liquidity ratios: the current ratio a Select the formula and enter the amounts to calculate the in net receivables is than the trend. 410 Il debt payment ability, and d) profitability. Print Done Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson 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 Requirement 1. Perform a trend analysis on T e areas favorable or unfavorable for the company? Begin by calculating the trend analysis. (Round the Selected income statement data Net sales revenue (assume all sales are credit sales) Cost of goods sold. Operating expenses Interest expense Income taxes 2018 2018 2017 2016 2015 35,200 $ 35,100 33,60031,800 Net sales revenue Inventory Accounts receivable, net 22,700 19,990 18,030 10,700 12,100 12.400 355 1,175 9% 9% 315 330 Is the trend in each of these areas favorable or unfa The trend percentages for sales revenue is increase in sales, which is Requirement 2. Using the industry averages as b a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2016 through 2018. (Round the ratios to two decimal places, X.Xx.) 445 1116 in net receivables is Ythan the trend Print Done I deht payment ability, and d) profitability. Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follovs. (Click the icon to view selected balance sheet data. Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. (Click the icon to view selected income statement data.) Data Table Requirement 1. Perform a trend analysis on Thompson's sales revenue, i trend in each of these areas favorable or unfavorable for the company? Furniture industry averages Current ratio. . Quick ratio Days' inventory outstanding Days' sales outstanding Days' payable outstanding Debt ratio Times-interest-eamed ratio Gross margin percentage Operating income percentage Begin by calculating the trend analysis. (Round the ratios to the nearest 2.4 1.0 83.0 52.0 33.0 68% 11.9 42% 796 2018 2017 Net sales revenue 9% Inventory 3% Is the trend in each of these areas favorable or unfavorable for the compa The trend percentages for sales revenue is increase in sales, vshich is Requirement 2. Using the industry averages as benchmarks, analyze Th a. Start by analyzing the liquidity ratios: the current ratio and the quick rati Select the formula and enter the amounts to calculate the current ratios fo The trend rend percentage in net receivables is than the trend b) turnover, c) overall debt payment ability, and d) profitability Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) (Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. Requirement 2. Using the industry averages as benchmarks, analyze Thompson's performance over the past three years in the following areas: a) liquidity, b) turnover, c) overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the arnounts to calculate the current ratios for the years 2016 though 2018. (Round the ratios to two decimal places, x.xx.) Current ratio 2018 2017 2016 Next, select the formula and enter the amounts to calculate the quick acid test ratios or the years 2016 through 2018 Abbrev ations used: Cash -cash and cash equivalents, SE = stockholders' equity, and ST = short term. Round the ratios to two decimal places, X.XX.) - Quick ratio 2018 2017 2016 )i Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. E Click the icon to view selected income statement cata Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. b. Analyze the turnover ratios: inventory turnover and days' inventory outstanding, accounts recevable turnover, days' sales outstanding, accounts payable turnover, days' payables outstanding, and cash conversion cycle. Select the formula and enter the amounts to calculate the inventory turnover for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx) nventory turnover 2018 2017 2016 Select the formula and enter the amounts to calculate days' inventory outanding (DiO) for the years 2016 through 2018. (Use a 365-day year. Round the DIO to the nearest whole day.) Days' inventory outstanding (DIO) - 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts receivable turnaver for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx.) Accounts receivable tumover Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) (Click the icon to view selected income statement data ) Industry averages have been gathered for several ratios. EB (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the accounts receivable tumaver for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx.) Accounts receivable turnover 2018 2017 2016 Select the ommula and enter the amounts to ca cu ate days sales ou anding DSO for the years 2015 t rough 2018. Use a 365- yeaRoundhe DSO to e nearest whole day -Days' sales outstanding (DSO) 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts payable turnover for the years 2016 through 2018. (Round the ratios to two decimal places, X.XX.) Accounts payable turnover 2018 2017 Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc.. follows. (Click the icon to view selected balance sheet data.)(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the accounts payable tumover for the years 2016 through 2018. (Round the ratios to two decimal places, X.xX.) Accounts payable turnover 2018 2017 2016 Select the formula and enter the amounts to calculate days' payables outanding (DPO) for the years 2016 through 2018. (Use a 365-day year. Round the DPO to the nearest whole day, X.) Days' nayables outstanding (DPO) - 2018 2017 2016 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter all amounts as whole numbers, X.) Cash conversion cycle 2018 2017 Choose from any list or enter any number in the input fields and then continue to the next question. Oi Selected data from Thompson Furniture, Inc, follows (Click the icon to view selected balance sheet data.)Click the icon to view selected income statement data) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter al amounts as whole numbers, x.) Cash conversion cycke 2018 2017 2016 c. Analyze the ability to pay long-term debt: debt ratio and times-interest-earned ratio. Select the formula and enter the amounts to calculate the debt ratios for the years 2016 through 2018. (Enter the ratios in decimal form [nor as percentages] to two decimal places, X.XX.) Debt ratio 2018 2017 [ 2016 Select the formula and enter the amounts to calculate the times interest-earned ratios for the years 2016 through 2018 Round the ratos to two decimal places xxx - Times-interest-earned ratio Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., tollows. (Click the icon to view selected balance sheet data )(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to vievw the ratios.) Read the equirements. Select the formula and enter the amounts to calculate the times-interest-eamed ratios for the years 2016 through 2018. (Round the ratios to two decimal places, X.XX.) Times-interest-earned ratio 2018 2017 2016 d. Analyze the profitability ratios: gross margin percentage and operating income percentage Select the formula and enter the amounts to calculate the gross margin (gross profit) percentages for the years 2016 through 2018. (Round the ratios to one tenth of a percent, X.x%.) Gross margin % 2018 2017 2016 Select the formula and enter the amounts to calculate the operating income percentage percentages for the years 2016 through 2018. (Round the ratios to one-tenth of a percent, X.X%.) Operating income % Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Funiture, Inc., follows. EEB (Click the icon to view selected balance sheet data.) EB (Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the operating income percentage percentages for the years 2016 through 2018 Round the ratios to one tenth of a percent, X X% Operating income % 2018 2017 2016 Now, using the industry averages as benchmarks, analyze Thompson's performance over the past three years. 6 96 9% Overall, Thompson's performance over the past three years looks and compare favorably to the industry averages. Most all the ratios showed over the three years. Thompson's performance over the past three years are due to: (Select all that apply.) A. Decreasing gross margin B. Increasing debt ratio C. Declining earnings D. Decreased cash flow E. Increasing long-term liabilities F Improved accounts receivable turnover Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. Click the icon to view selected income statement data. Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements Now, using the industry averages as benchmarks, analyze Thompsun's performance over the past three years Overall, Thompson's performance over the past three years looks , and Thompson's performance over the past three years are due to: (Select all that apply.) compare favorably to the industry averages. Most all the ratios showed over the three years. A. Decreasing gross margin B. Increasing debt ratio C. Declining earnings D. Decreased cash flow E. Increasing long-term liabilities F Improved accounts receivable turnover G. Buildup of inventories H. Operating income percentages are decreasing Inability to collect accounts receivable J. Payment of accounts payable is getting faster K. Improved interest coverage Requirement 3. Evalate Thompson's quality of earnings. Are there any red flags in your analysis? Explain. Choose from any list or enter any number in the input fields and then coninue to the next question Selected data from Thompson 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. F. Improved accounts receivable turnover (Click the icon to view selected income statement cata) G. Buildup of inventories H. Operating income percentages are decreasing I Inability to collect accounts receivable J. Payment of accounts payable is getting faster K. Improved interest coverage Requirement 3. Evaluate Thompson's quality of eamings. Are there any red flags in your analysis? Explan. First select the formula and enter the amounts to calculate the net income percentage ratios for years 2016 through 2018. Round the ratios to one-tenth percent. X.X%.) Net income 96 2018 2017 2016 Refer to the quality of earnings ratios you calculated in Requirements 2 and 3 and evaluate Thompson's qualiy of earnings, Are there any red flags in your analysis? Explain, All the ratios are 95 Quality of earnings is Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. Industry averages have been gathered for several ratios. Ell (Click the ican to view the ratios.) Read the requirements (click the icon to view selected income statement cata) Requirements Requirement 1. Perform a trend analysis on Thompsan's s h of these areas favorable or unfavorable for the company? Begin by calculating the trend analysis. (Round the ratios to 2018 201 1. Perform a trend analysis on Thompson's sales revenue, inventory, and receivables over the past three years, using 2015 as the base. Is the trend in each of these areas favorable or unfavorable for the company? Net sales revenue 9% 2. Using the industry averages as benchmarks, analyze Thompson's performance over the past three years in the fc lowing areas: a. Liquidity Overall debt payment abi ity b. Turnover d. Profitability Accounts receivable, net Is the trend in each of these areas favorable or unfavorable The trend percentages for sales revenue is ncrease in sales, which is Requirement 2. Using the industry averages as benchmarks a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2015 through 2018. (Round the ratios to two decimal places, X.xx.) 3. Evaluate Thompson's quality of earnings. Are there any red flags in your analysis? Explain. ntage in netreceivables is than the trend. Print Done c) overall deot payment ability, and d) profitability Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. EEB (Click the icon to view selected balance sheet data.) Industry averages have been gathered for several ratios.Data Table EEB (Click the icon to view the ratios.) Read the requirements. 2016 4,700 700 Selected balance sheet data Cash. Marketable securities Accounts receivable, net Inventory Total current assets Long-term assets Total assets Accounts payable Short-term notes payable Total current liabilities. Total long-term liabilities 2018 2017 2015 Requirement 1. Perform a trend analysis on Thompson's these areas favorable or unfavorable for the company? $3,400 $3,800 $ Begin by calculating the trend analysis. (Round the ratios 500 800 2018 7,500 7,000 5,100$4,000 Net sales revenue 6,400 500 000 3,900 17,800 17,400 14,500 7,600 8,900 25,100 25,000 23,400 1,400 4,750 7,000 7,579 Accounts receivable, net 7,300 Is the trend in each of these areas favorable or 3,100 2,500 6,300 5,100 11,000 8,200 3,220 2,500 The trend percentages for sales revenue is ncrease in sales, which is Requirement 2. Using the industry averages as h a. Start by analyzing the liquidity ratios: the current ratio a Select the formula and enter the amounts to calculate the in net receivables is than the trend. 410 Il debt payment ability, and d) profitability. Print Done Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson 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 Requirement 1. Perform a trend analysis on T e areas favorable or unfavorable for the company? Begin by calculating the trend analysis. (Round the Selected income statement data Net sales revenue (assume all sales are credit sales) Cost of goods sold. Operating expenses Interest expense Income taxes 2018 2018 2017 2016 2015 35,200 $ 35,100 33,60031,800 Net sales revenue Inventory Accounts receivable, net 22,700 19,990 18,030 10,700 12,100 12.400 355 1,175 9% 9% 315 330 Is the trend in each of these areas favorable or unfa The trend percentages for sales revenue is increase in sales, which is Requirement 2. Using the industry averages as b a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2016 through 2018. (Round the ratios to two decimal places, X.Xx.) 445 1116 in net receivables is Ythan the trend Print Done I deht payment ability, and d) profitability. Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follovs. (Click the icon to view selected balance sheet data. Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. (Click the icon to view selected income statement data.) Data Table Requirement 1. Perform a trend analysis on Thompson's sales revenue, i trend in each of these areas favorable or unfavorable for the company? Furniture industry averages Current ratio. . Quick ratio Days' inventory outstanding Days' sales outstanding Days' payable outstanding Debt ratio Times-interest-eamed ratio Gross margin percentage Operating income percentage Begin by calculating the trend analysis. (Round the ratios to the nearest 2.4 1.0 83.0 52.0 33.0 68% 11.9 42% 796 2018 2017 Net sales revenue 9% Inventory 3% Is the trend in each of these areas favorable or unfavorable for the compa The trend percentages for sales revenue is increase in sales, vshich is Requirement 2. Using the industry averages as benchmarks, analyze Th a. Start by analyzing the liquidity ratios: the current ratio and the quick rati Select the formula and enter the amounts to calculate the current ratios fo The trend rend percentage in net receivables is than the trend b) turnover, c) overall debt payment ability, and d) profitability Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) (Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. Requirement 2. Using the industry averages as benchmarks, analyze Thompson's performance over the past three years in the following areas: a) liquidity, b) turnover, c) overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the arnounts to calculate the current ratios for the years 2016 though 2018. (Round the ratios to two decimal places, x.xx.) Current ratio 2018 2017 2016 Next, select the formula and enter the amounts to calculate the quick acid test ratios or the years 2016 through 2018 Abbrev ations used: Cash -cash and cash equivalents, SE = stockholders' equity, and ST = short term. Round the ratios to two decimal places, X.XX.) - Quick ratio 2018 2017 2016 )i Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. E Click the icon to view selected income statement cata Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements. b. Analyze the turnover ratios: inventory turnover and days' inventory outstanding, accounts recevable turnover, days' sales outstanding, accounts payable turnover, days' payables outstanding, and cash conversion cycle. Select the formula and enter the amounts to calculate the inventory turnover for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx) nventory turnover 2018 2017 2016 Select the formula and enter the amounts to calculate days' inventory outanding (DiO) for the years 2016 through 2018. (Use a 365-day year. Round the DIO to the nearest whole day.) Days' inventory outstanding (DIO) - 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts receivable turnaver for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx.) Accounts receivable tumover Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data.) (Click the icon to view selected income statement data ) Industry averages have been gathered for several ratios. EB (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the accounts receivable tumaver for the years 2016 through 2018. (Round the ratios to two decimal places, X.xx.) Accounts receivable turnover 2018 2017 2016 Select the ommula and enter the amounts to ca cu ate days sales ou anding DSO for the years 2015 t rough 2018. Use a 365- yeaRoundhe DSO to e nearest whole day -Days' sales outstanding (DSO) 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts payable turnover for the years 2016 through 2018. (Round the ratios to two decimal places, X.XX.) Accounts payable turnover 2018 2017 Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc.. follows. (Click the icon to view selected balance sheet data.)(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the accounts payable tumover for the years 2016 through 2018. (Round the ratios to two decimal places, X.xX.) Accounts payable turnover 2018 2017 2016 Select the formula and enter the amounts to calculate days' payables outanding (DPO) for the years 2016 through 2018. (Use a 365-day year. Round the DPO to the nearest whole day, X.) Days' nayables outstanding (DPO) - 2018 2017 2016 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter all amounts as whole numbers, X.) Cash conversion cycle 2018 2017 Choose from any list or enter any number in the input fields and then continue to the next question. Oi Selected data from Thompson Furniture, Inc, follows (Click the icon to view selected balance sheet data.)Click the icon to view selected income statement data) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter al amounts as whole numbers, x.) Cash conversion cycke 2018 2017 2016 c. Analyze the ability to pay long-term debt: debt ratio and times-interest-earned ratio. Select the formula and enter the amounts to calculate the debt ratios for the years 2016 through 2018. (Enter the ratios in decimal form [nor as percentages] to two decimal places, X.XX.) Debt ratio 2018 2017 [ 2016 Select the formula and enter the amounts to calculate the times interest-earned ratios for the years 2016 through 2018 Round the ratos to two decimal places xxx - Times-interest-earned ratio Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Furniture, Inc., tollows. (Click the icon to view selected balance sheet data )(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to vievw the ratios.) Read the equirements. Select the formula and enter the amounts to calculate the times-interest-eamed ratios for the years 2016 through 2018. (Round the ratios to two decimal places, X.XX.) Times-interest-earned ratio 2018 2017 2016 d. Analyze the profitability ratios: gross margin percentage and operating income percentage Select the formula and enter the amounts to calculate the gross margin (gross profit) percentages for the years 2016 through 2018. (Round the ratios to one tenth of a percent, X.x%.) Gross margin % 2018 2017 2016 Select the formula and enter the amounts to calculate the operating income percentage percentages for the years 2016 through 2018. (Round the ratios to one-tenth of a percent, X.X%.) Operating income % Choose from any list or enter any number in the input fields and then continue to the next question Selected data from Thompson Funiture, Inc., follows. EEB (Click the icon to view selected balance sheet data.) EB (Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios.) Read the requirements Select the formula and enter the amounts to calculate the operating income percentage percentages for the years 2016 through 2018 Round the ratios to one tenth of a percent, X X% Operating income % 2018 2017 2016 Now, using the industry averages as benchmarks, analyze Thompson's performance over the past three years. 6 96 9% Overall, Thompson's performance over the past three years looks and compare favorably to the industry averages. Most all the ratios showed over the three years. Thompson's performance over the past three years are due to: (Select all that apply.) A. Decreasing gross margin B. Increasing debt ratio C. Declining earnings D. Decreased cash flow E. Increasing long-term liabilities F Improved accounts receivable turnover Choose from any list or enter any number in the input fields and then continue to the next question. Selected data from Thompson Furniture, Inc., follows. (Click the icon to view selected balance sheet data. Click the icon to view selected income statement data. Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the requirements Now, using the industry averages as benchmarks, analyze Thompsun's performance over the past three years Overall, Thompson's performance over the past three years looks , and Thompson's performance over the past three years are due to: (Select all that apply.) compare favorably to the industry averages. Most all the ratios showed over the three years. A. Decreasing gross margin B. Increasing debt ratio C. Declining earnings D. Decreased cash flow E. Increasing long-term liabilities F Improved accounts receivable turnover G. Buildup of inventories H. Operating income percentages are decreasing Inability to collect accounts receivable J. Payment of accounts payable is getting faster K. Improved interest coverage Requirement 3. Evalate Thompson's quality of earnings. Are there any red flags in your analysis? Explain. Choose from any list or enter any number in the input fields and then coninue to the next question Selected data from Thompson 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. F. Improved accounts receivable turnover (Click the icon to view selected income statement cata) G. Buildup of inventories H. Operating income percentages are decreasing I Inability to collect accounts receivable J. Payment of accounts payable is getting faster K. Improved interest coverage Requirement 3. Evaluate Thompson's quality of eamings. Are there any red flags in your analysis? Explan. First select the formula and enter the amounts to calculate the net income percentage ratios for years 2016 through 2018. Round the ratios to one-tenth percent. X.X%.) Net income 96 2018 2017 2016 Refer to the quality of earnings ratios you calculated in Requirements 2 and 3 and evaluate Thompson's qualiy of earnings, Are there any red flags in your analysis? Explain, All the ratios are 95 Quality of earnings is Choose from any list or enter any number in the input fields and then continue to the next
