1 Presented below you will find information regarding changes in ratios from the prior year to the current year for Hodge Co. Based on the change in each of the ratios, determine if the change would be considered favorable or unfavorable. 01:20:50 Ratio Profit margin Gross margin Acid-test ratio Accounts receivable turnover Basic earnings per share Inventory turnover $ Current Year 19 % 46 % 1.30 4.4 1.00 4.2 $ Prior Year 18 % 49 % 1.41 5.9 0.83 4.0 > Change