Question 2 [30 points] Stake Technology 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%) Stake Technology Inc. Income Statement Sales Cost of goods sold. Gross profit from sales. Operating expenses, Income before tax 2016 2015 2014 $1,837,000 $1,496,000 $1,286,000 1,246,000 1,143,000 1,046,000 591,000 353,000 240,000 241,000 210,000 195,000 350,000 143,000 45,000 104,000 42,000 13,000 $246,000 $101,000 Income taxes expense.. Net income Stake Technology Inc. Balance Sheet $32,000 Vertical Trend Percentages (%) 2016 2015 2014 2014 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 $475,000 $446,000 $383,000 306,000 271,000 251,000 518,000 417,000 386,000 220,000 190,000 159,000 327,000 277,000 229,000 $1,846,000 $1,601,000 $1,408,000 $437,000 $408,000 $352,000 422,000 369,000 348,000 383,000 308,000 286,000 604,000 516,000 422,000 $1,846,000 $1,601,000 $1,408,000 b) Assuming all other things are constant, indicate whether the vertical trend between sales and operating expenses is favourable or unfavourable. The vertical trend is (select one) (select one) favourable unfavourable Official Time: 11.57:49 SUBMIT AN