Question 6 [5 points] The following financial statements are for Benson Inc. 2013 Benson Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2012 Sales 1,333,500 1,403,000 1,237,300 Cost of goods sold 328.800 332,600 357.100 Gross profit from sales 1,004,700 1,070,400 880.200 Operating expenses. 324,500 338,000 320,800 Operating income 680,200 732,400 559,400 Interest expense 5,700 5,700 6,300 Income before taxes 674,500 726,700 553,100 Income taxes 136,900 130,100 120,100 Net income 537,600 596,600 433,000 Benson Inc. Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 Cash 61.800 Short-term investments 55,000 Accounts receivable, net.. 33,200 Merchandise inventory 43,700 Prepaid expenses 6.100 Notes receivable, due in 2016 7,500 Property, plant and equipment, net 419,000 Total assets 626,300 Liabilities and Equity Accounts payable 14,700 Salaries payable 5,200 Income taxes payable 38,550 Long-term note payable secured by mortgage on plant assets 127,000 Share capital 170,000 Retained earnings 270,850 Total liabilities and equity 626,300 2013 74,600 49,000 28,300 43,400 5,400 7.000 485.000 692,700 2012 91,800 51,000 26,300 51,000 6,800 7,500 463.000 697,400 17,600 20,400 6,300 5,800 33.250 39.900 155,000 185,000 180.000 200,000 300,550 246,300 692,700 697,400 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)