The following financial statements are for Velor Inc. Velor Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 Velor Inc. Balance Sheet 2014 2013 2012 Sales Cost of goods sold 1,280,900 1,254,500 1,458,000 837,000 885,100 895,100 Cash Short-term investments Gross profit from sales, Operating expenses Operating income Interest expense 443,900 170,000 273,900 9.000 369,400 562,900 Accounts receivable 206,400 182,000 Income before taxes 264,900 Income taxes Net income 125,500 139,400 163,000 380,900 8,700 7,550 154,300 373,350 111,100 94,900 43,200 278,450 Notes receivable, due in 2016 Property, plant and equipment, net Total assets December 31, 2014, 2013, and 2012 2014 Assets Merchandise inventory Prepaid expenses 2013 2012 101,300 91,200 97,800 15,000 14,000 13,000 66,400 56,800 47,700 68,700 78,600 67,900 10,200 11,100 9,900 11,500 12,500 12,000 391,000 380,000 392,000 664,100 644,200 640,300 Liabilities and Equity Accounts payable 17,600 21,500 19,200 Salaries payable 18,700 22,400 19.800 Property taxes payable 11,650 11,600 11,100 Long-term note payable 124,000 109,000 99.000 Share capital 230,000 200,000 180,000 Retained earnings 262.150 279,700 311,200 Total liabilities and equity 664,100 644,200 640,300 Compute the gross margin 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 Gross margin 2014 2013 Analysis (select one)