Question 14 [30 points) X-cell 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%) X-cellino Income Statement Vertical Trend Porcentages (%) 2016 2015 2014 2016 2015 2014 Sales $1,913,000 $1,553,000 $1,293,000 Cost of goods sold 1,223,000 1,149,000 1,009,000 Gross profit from sales 690,000 404,000 284,000 Operating expenses 341,000 283,000 241,000 Income before tax 349,000 121,000 43,000 Income taxes expense 104,000 36,000 12,000 Net income $245,000 $85,000 $31,000 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 X.coll Inc Balance Sheet Vertical Trend Percentages (9) 2016 2015 2014 2016 2015 2014 $66,000 $55,000 338,000 1,190,000 964,000 833,000 67,000 61,000 49,000 341,000 320,000 283,000 322,000 263,000 216,000 $1,986,000 $1,663,000 $1,419,000 $539,000 $460,000 $390,000 190,000 168,000 142,000 998,000 938,000 793,000 259,000 99,000 94,000 $1,986,000 $1,663,000 $1,419,000 b) Assuring all other things are constant, indicate whether the vertical trend between sales and not income is favourable or unfavourable The vertical trend is (select one) b) Assuming all other things are constan The vertical trend is (select oie) (select one) favourable unfavourable