accounting

Question 1 [25 points] Use Bentley Inc.'s financial statements to compute the required ratios below, and indicate whether the change from year to year is favourable or unfavourable. All the sales recorded in the income statement are on credit. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places Bentley Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales $553,300 $591,300 $588,000 Cost of goods sold 238,200 276,900 336,800 Gross profit from sales 315.100 314,400 251,200 Operating expenses 90.100 97,700 105,000 Income from operations 225,000 216.700 146.200 Interest expense 5,450 6,500 6,850 Income before taxes 219,550 210,200 139,350 Income taxes 40,500 26,700 33,900 Net income $179,050 $183,500 $105,450 Bentley Inc. Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 2012 Cash $65,200 $77,400 $76,300 Short-term investments 75,000 92,000 80,000 Accounts receivable, net 23,200 26,600 23,300 Merchandise inventory 101,300 85,100 95,300 Prepaid expenses 8,700 8,300 8,600 Notes receivable, due in 2017 10,000 13,000 14,000 Plant assets, net 293,000 342,000 288,000 Total assets $576,400 $644,400 $585,500 Liabilities and Equity Accounts payable $16.100 $19,400 $18,800 Salaries payable 20,500 19,600 19,000 Income taxes payable 13,600 16.250 18,600 Long-term note payable secured by mortgage on plant assets 113,000 136,000 171,000 Share capital, 100,000 shares 180,000 200,000 240,000 Retained earnings 233,200 253,150 118,100 Total liabilities and equity $576,400 $644,400 $585,500 2014 2013 Ratio Accounts receivable collection period Acid-test ratio Equity ratio (%) Number of days of sales in inventory Debt ratio (%) Analysis (select one) (select one) (select one) (select one) (select one)