The following financial statements are for Southgate Inc SONDERE Meme Statement POT F December 3 2014 2013 and 2012 2014 2013 Sales 1,052,700 1,005,600 864,800 Cost of goods sold 642,400 568,700 576,400 Gross profit from sales 410,300 436,900 288.400 Operating expenses 128,700 139,200 157,800 Operating income 281,600 297,700 130,600 Interest expense 7,250 7,250 7,300 Income before taxes 274,350 290.450 123,300 Income taxes 23,500 25,500 250.850 Net income 264,950 96,400 90 20.700 25 000 49,900 28,600 Balans Domt 3201420 Assets Cash Short-term investments Accounts receivable net Merchandise inventory Prepaid expenses Notes receivable, due in 2016 Property, plant and equipment, net Total assets Liabilities and Equity Accounts payable Salaries payable Income taxes payable Long-term note payable secured by mortgage on plant assets Share capital Retained earnings Total liabilities and equity 19,600 23 000 43,000 34 100 2,600 14.500 284.000 420 800 22.100 22,000 53.700 32 500 2.500 13,000 325 000 470 800 2,300 12,500 290,000 429,000 26,900 40.900 5,000 4,400 153,000 110,000 115 700 429,000 49.200 6,200 4 150 139,000 100.000 122 250 420.800 44 800 7,300 4.750 122000 100,000 191.950 470 800 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 con Apply your analysis in very general terms All values should be accurate to at least two decimal places Ratio 2014 2013 Measure of Analysis Acid-test ratio (select one) (select one) A ENG $:45 A