The following financial statements are for Gulf Corp.

Gulf Corp.Income StatementFor Years Ended December 31, 2014, 2013, and 2012 201420132012Sales1,297,3001,192,1001,183,900Cost of goods sold760,100900,3001,068,500Gross profit from sales537,200291,800115,400Operating expenses40,50037,40034,800Operating income496,700254,40080,600Interest expense10,7008,9508,300Income before taxes486,000245,45072,300Income taxes23,90021,50024,400Net income462,100223,95047,900

Gulf Corp.Balance SheetDecember 31, 2014, 2013, and 2012Assets201420132012Cash18,00017,40018,000Short-term investments46,00041,00037,000Accounts receivable54,50050,10054,000Merchandise inventory41,30041,70052,200Prepaid expenses6,5005,9005,700Notes receivable, due in 20163,0004,0005,000Property, plant and equipment, net290,000315,000344,000Total assets459,300475,100515,900Liabilities and Equity Accounts payable41,50043,00040,400Salaries payable4,8005,3005,200Property taxes payable5,2506,2507,050Long-term note payable89,00083,00077,000Share capital280,000260,000280,000Retained earnings38,75077,550106,250Total liabilities and equity459,300475,100515,900

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.

Ratio20142013AnalysisMerchandise turnover (select one)