Ludwig Inc.'s income statement and balance sheet are given below. 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%) Ludwig Inc. Income Statement Vertical Trend Percentages (%) 2016 2015 2014 2016 2015 2014 $1,533,000 $1,239,000 $1,069,000 Cost of goods sold 1,368.000 1.110,000 946,000 Gross profit from sales 165,000 129,000 123,000 Operating expenses. 101,000 86,000 80,000 Income before tax 64,000 43,000 43,000 Income taxes expense................. 19,000 12,000 12,000 Net income $45,000 $31,000 $31,000 Sales..... Cash Accounts receivable, net... Prepaid expenses Merchandise inventory.... Plant assets, net. Total assets Accounts payable Long-term notes payable Share capital (100,000 issued)... Retained earnings Total liabilities and equity. Ludwig Inc. Balance Sheet Vertical Trend Percentages (%) 2016 2015 2014 2016 2015 2014 $265,000 $158,000 $92,000 67,000 62,000 54,000 215,000 193,000 178,000 269,000 221,000 188,000 697,000 648,000 538.000 $1,513,000 $1,282,000 $1,050,000 $496,000 $419,000 $345,000 840,000 702,000 571,000 79,000 72,000 59,000 98,000 89,000 75,000 $1,513,000 $1,282,000 $1,050,000 b) Assuming all other things are constant, indicate whether the vertical trend between sales and operating expenses is favourable or unfavourable. The vertical trend is (select one)