You are an accountant of ABC Company. Your supervisor has asked you to comment on the following information from the company's most recent annual report:

1. This year, net income was $5.25 million and the net sales were $43.75 million. Last year's net income was $5 million and the net sales were $33.5 million.
2. The current ratio has changed to 2:1 from last year's 1.5:1
3. The debt/total assets ratio has changed to 4:5 from last year's 3:5. The company purchased three (3) pieces of new manufacturing machines.
4. Current year's receivables turnover is 11 times while last years was 10 times; the average collection period is 33.2 days this year and 36.5 days last year. The credit terms are 2/10, n/30.

Required:

Write at least two complete sentences to analyze each of the above four items.