Question 7 [5 points] The following financial statements are for X-cell Inc. X-cell Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales 1,904,400 1,735,200 1,493,500 Cost of goods sold 507,200 572,900 639,300 Gross profit from sales 1,397,200 1,162,300 854,200 Operating expenses 287,400 240,900 207,300 Operating income 1,109,800 921,400 646,900 Interest expense 4,750 4.500 3,950 Income before taxes 1,105,050 916.900 642,950 Income taxes 243,000 240,600 221,200 Net income 862,050 676,300 421,750 X-cell Inc Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 Cash 42,700 Short-term investments 59.000 Accounts receivable, net 32,900 Merchandise inventory 93,300 Prepaid expenses 4,400 Notes receivable, due in 2016 14,500 Property, plant and equipment, net 269.000 Total assets 515.800 Liabilities and Equity Accounts payable 26.900 Salaries payable 16,300 Income taxes payable 62.300 Long-term note payable secured by mortgage on plant assets 107,000 Share capital 170,000 Retained earnings 133,300 Total liabilities and equity. 515,800 2013 44,000 68,000 31,500 95,000 5,100 12,500 292,000 548,100 2012 39,000 72,000 31,800 84,300 5,500 13,000 300,000 545,600 33,600 40,700 16,700 18.400 68,100 69,550 115,000 100,000 170,000 200,000 144,700 116.950 548,100 545,600 Compute the accounts receivable 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 Measure of Analysis Accounts receivable turnover (select one) (select one)