The UCW Furniture Inc. operates several stores selling pine furniture. Selected financial ratios are as follows:

	2024	2023	2022
Current ratio	2,35	2,30	2,25
Quick ratio	0,96	0,91	0,88
Receivables turnover	10,43	9,61	8,69
Inventory turnover	5,61	5,37	5,07
Debt to equity ratio	0,88	0,77	0,58
Return on assets	5,5%	6,0%	9,8%
Gross margin	8,7%	12,6%	18,7%
Profit margin	3,8%	4,2%	6,9%
Return on equity	14,2%	13,0%	12,0%

In 2022, UCW Furniture Inc decided to change its strategy from selling high-end furniture to selling lower-cost items in order to be more competitive

and began importing low-cost furniture. In order to do this the company invested in new warehouse facilities and its total assets grew from

$2.5 million in 2022 to $4.5 million in 2023 and finally to $5 million in 2024.

Required

a) Briefly discuss what these financial ratios indicate about how UCW Furniture Inc was affected by its decision to change its strategy in 2022.

b) Which measures have deteriorated during the subsequent periods?

c) Which ratios indicate positive action taken by UCW Furniture Inc during the subsequent periods?