The income statements and balance sheets for Riviera Inc. are shown below for the last three fiscal years. All sales are on credit. Sales revenue Cost of Sales Gross Profit Expenses Operating Expenses Depreciation Expense Advertising Expense Interest Expense Riviera Inc. Income Statement for the years ended December 31, 2018-2020 2020 2019 $720,000 $800,000 260,000 288,000 540,000 432,000 Total Expenses Net Income (loss) before taxes Income Tax Expense (Return) Net Income (loss) after taxes Cash Accounts Receivable Inventory Equipment total Assets Accounts Payable Unearned Revenue Long-Term Debt Common Shares Retained Earnings Total Liabilities and Shareholders' Equity 320,000 216,000 342,000 64,000 72,000 76,000 80,000 72,000 114,000 10,000 10,000 10,000 474,000 370,000 542,000 (48,000) (21,600) ($26,400) 66,000 29,700 $36,300 Riviera Inc. Balance Sheet As at December 31, 2018-2020 2018 $760,000 266,000 494,000 62,000 27,900 $34,100 2020 2019 $149,600 $234,400 84,000 70,000 136,000 102,000 110,000 174,000 $564,400 $495,600 2018 $80,000 56,000 61,200 246,000 $443,200 $54,600 $45,500 $36,400 21,000 23,100 18,900 50,000 50,000 50,000 85,500 60,000 55,000 353,300 317,000 282,900 $564,400 $495,600 $443,200

The income statements and balance sheets for Riviera inc, are shown below for the last three fienol veark. All sales are on credit. Required a) Calculate the following ratios for Riviera Inc. for 2019 and 2020, and state whether the ratios improved or weakened in 2020 . b) The owner of Hathaway inc. is pleased to see that the company has started generating profits again and assumes that profitability must be improving. Perform a ratio analysis to determine if the owner's assumption is correct or not. Explain. c) What does the company's inventory turnover ratio indicate