The following financial statements are for Star Inc.

Star Inc.Income StatementFor Years Ended December 31, 2014, 2013, and 2012 201420132012Sales1,390,4001,570,4001,372,000Cost of goods sold1,203,1001,154,9001,239,700Gross profit from sales187,300415,500132,300Operating expenses40,20041,80049,500Operating income147,100373,70082,800Interest expense950850950Income before taxes146,150372,85081,850Income taxes20,70024,80025,700Net income125,450348,05056,150

Star Inc.Balance SheetDecember 31, 2014, 2013, and 2012Assets201420132012Cash44,90042,50047,600Short-term investments44,00054,00063,000Accounts receivable, net56,90056,70053,600Merchandise inventory29,20024,40025,100Prepaid expenses2,3002,8003,400Notes receivable, due in 201712,50014,50013,500Property, plant and equipment, net331,000366,000362,000Total assets520,800560,900568,200Liabilities and Equity Accounts payable20,70023,20028,700Salaries payable5,1005,4005,800Income taxes payable14,00015,55018,750Long-term note payable secured by mortgage on plant assets211,000190,000195,000Share capital130,000160,000160,000Retained earnings140,000166,750159,950Total liabilities and equity520,800560,900568,200

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.

Ratio20142013Measure ofAnalysisAcid-test ratio (select one)(select one)