Question 9 [5 points) Use Zoom Inc.'s financial statements to compute the equity ratio, 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. Zcom Inc Income Statement For Yoars Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales $713,700 $852,900 $846,900 Cost of goods sold 287,700 310,600 369,500 Gross profit from sales 426,000 542,300 477,400 Operating expenses 211,500 193,300 220,000 Income from operations 214,500 349,000 257 400 Interest expense 6,600 7,650 6,600 Income before taxes 207,900 341,350 250,800 Income taxes 30,000 45,800 34,200 Net income $177,900 $295,550 $216,600 Zcom Inc. Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 2012 Cash $80,000 $87,600 $91,100 Short-term investments 96,000 104,000 94,000 Accounts receivable, net 44,600 48,000 58,600 Merchandise inventory 58,600 56,700 64,000 Prepaid expenses 8,500 7,200 8,000 Notes receivable, due in 2017 11,500 10,500 10,000 Plant assets, net 448,000 484,000 462,000 Total assets $747,200 $798,000 $787,700 Liabilities and Equity Accounts payable $16,600 $19,000 $17,100 Salaries payable 2,400 2,400 2,300 Income taxes payable 5,800 6,100 7,400 Long-term note payable secured by mortgage on plant assets 174,000 167,000 156,000 Share capital, 200,000 shares 300,000 310,000 290,000 Retained earnings 248,400 293,500 314,900 Total liabilities and equity $747,200 $798,000 $787,700 Ratio 2014 2013 Analysis (select one) Equity ratio (%) Analysis (select one) (seledsone) favourable unfavourable MARK Jequal