Question 18 [30 points] Holden Corp'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%) Holden Corp. Income Statement Vertical Trend Percentages (%) 2016 2015 2014 2016 2015 2014 Sales $1,693,000 $1,548,000 $1,321,000 Cost of goods sold. 1,568,000 1,401,000 1,179,000 Gross profit from sales 125,000 147,000 142,000 Operating expenses 116,000 103,000 84,000 Income before tax 9,000 44,000 58,000 Income taxes expense 2,000 13,000 17,000 Net income $7,000 $31,000 $41,000 Holden Corp. Balance Sheet Vertical Trend Percentages (%) 2016 2015 2014 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 2016 2015 2014 $251,000 $215,000 $184,000 532,000 462,000 413,000 83,000 79,000 74,000 218,000 199,000 174,000 530,000 445,000 382,000 $1,614,000 $1,400,000 $1,227,000 $166,000 $158,000 $140,000 330,000 313,000 282,000 70,000 64,000 53,000 1,048,000 865,000 752,000 $1,614,000 $1,400,000 $1,227,000 b) Assuming all other things are constant, indicate whether the vertical trend between sales and net income is favourable or unfavourable. The vertical trend is (select one)