Additional information:1. Inventory at the beginning of 2010 was $118000.2. Rece

Additional information:1. Inventory at the beginning of 2010 was $118000.2. Receivables (net) at the beginning of 2010 were $88000.The allowance for doubtful accounts was $4000 at the end of 2011 $3800 at the end of 2010 and $3700 at the beginning of 20103. Total assets at the beginning of 2010 were $630000.4. No common stock transactions occurred during 2010 or 2011.5. All sales were on account.Instructions(a) Indicate by using ratios the change in liquidity and profitability of Hanshew Company from 2010 to 2011. (b) Given below are three independent situations and a ratio that may be affected. For each situation compute the affected ratio (1) as of December 31 2011 and (2) as of December 31 2012 after giving effect to the situation. Net income for 2012 was $50000. Total assets on December 31 2012 were$700000.br>