The following financial statements are for ABC Inc

The following financial statements are for ABC Inc. ABC Inc. Income Statement For Years Ended December 31, 2023, 2022, ABC Inc. Balance Sheet December 31, 2023, 2022, and 2021 Sales Cost of goods sold Gross profit from sales Operating expenses Operating income Interest expense Income before taxes Income taxes Net income 2023 580,100 637,400 163,400 474,000 1,150 472,850 106,100 366,750 and 2021 2022 507,300 546,600 157,400 389,200 1 ,ooo 388,200 103,400 284,800 2021 946,600 555,200 391 ,400 153,800 237,600 850 236,750 92,900 143,850 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Notes receivable, due in 2027 Property, plant and equipment, net Total assets Accounts payable Salaries payable iabilities and Equity Income taxes payable Long-term note payable secured by mortgage on plant assets Share capital Retained earnings Total liabilities and equity 2023 62,900 30,000 59,500 60,300 12,500 13,000 190,000 428,200 36,200 18,600 26,950 71,000 100,000 175,450 428,200 2022 64,400 27,000 51,800 71,500 10,700 14,000 164,000 403,400 31,800 19,200 33,050 75,000 110,000 134,350 403,400 2021 66,900 27,000 48,300 62,600 9,000 14,500 140,000 368,300 33,400 17,000 32,350 76,000 100,000 109,550 368,300 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 Acid-test ratio 2023 2022 Measure of (select one) Analysis (select one)