Please solve the question and show the calculations.

8 Question 7 [5 points) The following financial statements are for Stake Technology Inc Technology S Techno Income Statement For Years Ended December 31, 2014, 2013, and 2012 December 1, 2014, 2012, and 2012 2014 2013 2012 2014 2017 Sales 782,300 806,800 757 200 Cash 45.900 55,700 52100 Cost of goods sold 579,300 643 200 683,500 Short-term investments 59,000 74.000 73 000 Gross profit from sales 200,000 253,600 73.700 Accounts receivable 23,800 25,400 21,300 Operating expenses 18,300 15,800 17.900 Merchandise inventory 9.200 10,000 10.400 Operating income 184,700 237,800 65,800 Prepaid expenses 5,500 6.900 7.200 Interest expense 8,700 10,450 9.500 Notes receivable, due in 2017 8,500 9.500 8.500 Income before taxes 176,000 227,350 46,300 Property, plant and equipment, net 289.000 348.000 374 000 Income taxes 13.600 15,700 14,800 Total assets 440,900 530 400 54500 Net income 162.400 211.050 31,500 Lisbetes and Equity Accounts payable 39,700 38 800 33.800 Salarios payable 2.800 2.700 2.400 Property taxes payable 10.800 11 250 9450 Long term note payable 132,000 123 000 Share Capital 210.000 180.000 no Retained earnings 45,600 174 Total abities and equy 140.000 550,400 Compute the gross margin below, and indicate whether the change from year to year is favourable or unfavourable for your analysis and Apply your analysis in very goneral forms All values should be accurate to at least two decimal places Ratio 2014 2013 Analysis Favourable Bross margin