a) Express this information as vertical trend percents. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%)

Stake Technology Inc.Income Statement Vertical Trend Percentages (%) 201620152014201620152014Sales$1,691,000$1,391,000$1,183,000 Cost of goods sold1,183,0001,126,0001,008,000 Gross profit from sales508,000265,000175,000 Operating expenses115,000100,00088,000 Income before tax393,000165,00087,000 Income taxes expense117,00049,00026,000 Net income$276,000$116,000$61,000

Stake Technology Inc.Balance Sheet Vertical Trend Percentages (%) 201620152014201620152014Cash$261,000$211,000$166,000 Accounts receivable, net199,000175,000143,000 Prepaid expenses458,000373,000312,000 Merchandise inventory110,000105,00099,000 Plant assets, net514,000449,000364,000 Total assets$1,542,000$1,313,000$1,084,000 Accounts payable$400,000$324,000$277,000 Long-term notes payable360,000319,000265,000 Share capital (100,000 issued)199,000173,000141,000 Retained earnings583,000497,000401,000 Total liabilities and equity$1,542,000$1,313,000$1,084,000

b) Assuming all other things are constant, indicate whether the vertical trend between net income and operating expenses is favourable or unfavourable.

The vertical trend is(