Question 10 [5 points] Use Vision Consulting Inc.'s financial statements to compute the times interest earned ratio, 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 Vision Consulting in Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales $558,700 $642,100 $588,300 Cost of goods sold 507,400 529,600 535,900 Gross profit from sales 49,300 112,500 152,400 Operating expenses 35,400 36,000 38,300 Income from operations 13,900 76,500 114,100 Interest expense 5.100 25,700 40,900 Income before taxes 8,800 50.800 73,200 Income taxes 1,400 6,400 16,600 Not income $7,400 $44,400 $58,600 Vision Consulting Inc. Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 2012 Cash $67,400 $63,800 $61,000 Short-term investments 39,000 38,000 39,000 Accounts receivable, net 46,800 45,900 40,400 Merchandise inventory 45,700 48,800 53,800 Prepaid expenses 5,200 5,000 5,400 Notes receivable, due in 2017 9,500 9,000 8,000 Plant assets, net 268,000 314,000 287,000 Total assets $481,600 $524,500 $494,600 Liabilities and Equity Accounts payable $48,900 $41,700 $35,500 Salaries payable 12,600 13,100 11,600 Income taxes payable 2,500 2,950 3,650 Long-term note payable secured by mortgage on plant assets 191,000 181,000 178,000 Share capital, 200,000 shares 90,000 120,000 140,000 Retained earnings 136,600 165,750 125,850 Total liabilities and equity $481,600 $524,500 $494,600 2014 2013 Ratio Times interest earned ratio Analysis (select one) Analysis (select one) (select one) favourable unfavourable MAR equal