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The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence:

		2018		2019		2020
Statement of Financial Position
Assets
Cash		$23,700		$20,000		$27,400
Accounts receivable		67,700		55,500		146,000
Inventory		113,000		140,000		231,000
Capital assets (net)		424,000		467,000		484,000
Other assets		230,000		206,000		267,700
		$858,400		$888,500		$1,156,100
Liabilities and equity
Accounts payable		$110,000		$55,000		$110,000
Long-term debt		192,000		242,000		484,000
Common shares		511,000		511,000		511,000
Retained earnings		45,400		80,500		51,100
		$858,400		$888,500		$1,156,100
Statement of Earnings
Sales		$625,000		$835,000		$915,000
Cost of goods sold		(387,500)		(559,450)		(640,500)
Other expenses		(167,000)		(239,000)		(237,000)
		70,500		36,550		37,500
Income tax		(21,150)		(10,965)		(11,250)
Net income		$49,350		$25,585		$26,250

1)

Based on above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2018 to 2020. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.) 2018 2019 2020 Sales % % % Cost of goods sold % % % Gross margin % % % Other expenses % % % Income taxes % % % Net income % % % 2018 2019 2020 Current Ratio : 1 : 1 Quick Ratio :1 :1 A/R Turnover times times Average Collection Period days days Inventory Turnover times times Days to Sell Inventory days days

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