The following information comes from the accounting records of Wildhorse Ltd.: 2022 2023 2024 Statement of Financial Position Assets Cash $34,900 $32,000 $38,000 Accounts receivable 101,700 119,000 169,000 Inventory 164,000 195,000 190,000 Capital assets (net) 639,000 678,000 757,000 Other assets 345,000 317,000 402,000 $1,284,600 $1,341,000 $1,556,000 Liabilities and shareholders' equity Accounts payable $149,000 $169,000 $192,000 Long-term debt 300,000 325,000 522,000 Common shares 779,000 779,000 779,000 Retained earnings 56,600 68,000 63,000 $1,284,600 $1,341,000 $1,556,000 Statement of Income Sales Cost of goods sold $1,059,000 $1,199,000 $1,347,000 783,660 875,270.0 969,840 Other expenses 254,160 275,770 323,280 21,180 47,960 53,880 Income tax 17,000 11,990 16,164 Net income $4,180 $35,970 $37,716 (a1) Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2022 to 2024. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.) 2022 2023 2024 Sales 100 % 100 % 1000 % Cost of goods sold 74 % 73 % 72 % Gross margin 26 % 27 % 28 % Other expenses 24 % 23 % 24 % Income taxes 1.6 % 1.0 % 1.2 % Net income Current ratio Quick ratio 0.39 % 3.0 % 2.8 % 2022 4.3 : 1 2023 3.9 :1 1 3.2 :1 2.7 :1 202 A/R turnover 9.5 times 8.3 times Average collection period 38.0 days 43.9 days Inventory turnover 4.3 times 4.5 times Days to sell inventory 84.8 days 81.1 days SUPPORT