Ludwig Inc.'s adjusted trial balance is shown below. In addition, the following information is known: No shares were issued in the years ended December 31, 2013 and 2014. No dividends were declared or paid in the years ended December 31, 2013 and 2014. The market value for the common shares at December 31, 2013 and 2014 were $15 and $16 respectively.

Ludwig Inc. Adjusted Trial Balance December 31, 2014 2013 2012

Cash 595,050 412,850 146,500

Account receivable 40,600 32,950 31,675

Allowance for doubtful accounts 10,000 3,750 5,575

Merchandise inventory 42,500 41,900 39,900

Prepaid expenses 3,000 2,600 2,900

Notes receivable, due in 2019 13,000 15,500 13,500

Property, plant and equipment assets 371,250 405,725 516,650

Accumulated depreciation 91,250 90,725 126,650

Accounts payable 36,700 36,700 35,300

Unearned sales 5,200 4,500 4,500

Preferred shares;

$1.00 non-cumulative; 100,000 shares 290,000 290,000 290,000

Common shares;

50,000 shares issued and outstanding 170,000 170,000 170,000

Retained earnings 247,850 49,100 7,400

Sales 1,226,400 1,038,600 1,286,500

Cost of goods sold 849,400 604,100 1,099,600

Other operating expenses 167,700 201,800 124,800

Interest expense 8,900 8,750 7,600

Income tax expense 46,000 25,200 12,800

Ratio 2014 2013 Change

Ind. Average Comparison

Current ratio 13.26

Acid-test ratio 16.15

Accounts receivable turnover 36.75

Merchandise turnover 21.34

Days' sales uncollected 7.78

Days' sales in inventory 19.41

Total asset turnover 1.44

Debt ratio 12.68

Equity ratio 87.32

Times interest earned 21.29

Profit margin 13.26

Gross margin 26.93

Return on total assets 14.44

Return on common shareholders' equity 26.07

Book value per common share 12.91

Book value per preferred share 2.42

Basic earnings per share 3.25

Price-earnings ratio 5.93

Accounts Payable Turnover 18.60

Required: Industry averages for each ratio are shown in the table above. Use this information to complete the chart above by calculating the required ratios, determining if the change from the previous year is favourable or unfavourable, and then determining whether the each ratio (for 2014) is favourable or unfavourable compared to the industry average. If there is no change to 2 decimal places, select 'No change' if comparing from year to year, or 'The same as' if comparing to the industry average. All values should be accurate to at least two decimal places.