Question 6 [5 points] The following financial statements are for Global Filter Corp Global Filter Comp Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales 1,183,700 1,404,100 1,276,000 Cost of goods sold 706,500 707,600 737,700 Gross profit from sales 477,200 696,500 538,300 Operating expenses 146,000 143,400 137,500 Operating income 331,200 553,100 400,800 Interest expense 6.900 6,650 7,350 Income before taxes 324,300 548,450 393,450 Income taxes 130,500 155,300 144,700 Net income 193,800 391,150 248,750 Global Filter Corp Balance Shoot December 31, 2014, 2013, and 2012 Assets 2014 2013 Cash 113,600 98,500 Short-term investments 82,000 70,000 Accounts receivable 27.100 22,700 Merchandise inventory 86.900 83,700 Prepaid expenses 3,900 4,800 Notes receivable, due in 2016 4,500 5,500 Property, plant and equipment, net 205,000 235,000 otal assets 523,000 520.200 Libilities and Equity Accounts payable 10,400 10,500 Salaries payable 14,000 14,200 Property taxes payable 25,650 30,500 Long-term note payablo 149,000 148,000 Share capital 180,000 180,000 Retained earnings 143,950 137,000 Total liabilities and equity 523,000 520,200 Compute the merchandise turnover 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 Analysis (select one) Merchandise turnover 2013 Analysis (select one) (select one) Favourable Unfavourable SUBMIT AND MARK