Question 1 [5 points] The following financial statements are for Oppong Corporation Oppong Corporation Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales 1,379,600 1,321,700 1,263,700 Cost of goods sold 432,500 501,800 534,600 Gross profit from sales 947,100 819,900 729,100 Operating expenses 304,500 307,500 358,800 Operating income 642,600 512,400 370,300 Interest expense 3,150 2,650 2,850 Income before taxes 639,450 509,750 367,450 Income taxes 86,700 84,400 78,300 Net income 552,750 425,350 289,150 Oppong Corporation Balance Sheet December 31, 2014 2013 and 2012 Assets 2014 Cash 75.900 Short-term investments 69,000 Accounts receivable, net 36,800 Merchandise inventory 83 300 Prepaid expenses 6,500 Notes receivable, due in 2017 12,500 Property, plant and equipment, net 406.000 Total assets 690.000 Liabilities and Equity Accounts payable 24,100 Salaries payable 12.500 Income taxes payable 35,550 Long-term note payable secured by mortgage on plant assets 216.000 Share capital 120.000 Retained earnings 281.850 Total liabilities and equity. 690.000 90,100 79,000 32,200 74 800 5,800 11,000 473000 765.700 94.800 68,000 31 500 69 800 6,000 9.500 445,000 724,600 20.700 14.000 34,050 185,000 120,000 391,950 765.700 25,000 14.900 35,600 197,000 120.000 332.100 724.600 Compute the acid-test ratio below, and indicate whether the change from year to year is favourable or unfavourable 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 Ratio 2014 2013 Measure of Analysis Acid-test ratio (select one) (select one) ENG 10:06 24-04-2021 karate Cearch