Use Northstar Corp.'s financial statements to compute the required ratios below, and indicate whether the change from year to year is favourable or unfavourable. All the sales recorded in the income statement are on credit. 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. 528,500 Northstar Corp Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales $802,400 $796,900 $714,600 Cost of goods sold. 602,400 445,500 Gross profit from sales. 200,000 268,400 269,100 Operating expenses. 168,400 190,200 162,200 Income from operations 31,600 78,200 106,900 Interest expense 7,000 8,500 9,050 Income before taxes 24,600 69,700 97,850 Income taxes 3,100 17,200 10,200 Net income $21,500 $52,500 $87,650 2012 Northstar Corp Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 Cash $40,100 $44,900 $37,500 Short-term investments 29,000 33,000 38,000 Accounts receivable, net. 21,200 23,800 20,000 Merchandise inventory. 64,400 59,000 72.800 Prepaid expenses 3,600 4,100 3,600 Notes receivable, due in 2017. 10.000 12,000 14.000 Plant assets, net 146,000 145,000 160,000 Total assets $314,300 $321,800 $345,900 Liabilities and Equity Accounts payable $44,000 $37,200 $42,900 Salaries payable 5,400 5,100 4,400 Income taxes payable 4,750 5,500 6,300 Long-term note payable secured by mortgage on plant assets 18,000 16,000 20.000 Share capital, 150,000 shares 220,000 250,000 230,000 Retained earnings 22,150 8,000 42,300 Total liabilities and equity. $314,300 $321,800 $345,900 2014 2013 Ratio Accounts receivable collection period Return on total assets (%). Return on equity (%). Times interest earned ratio... Equity ratio (%). Analysis (select one) (select one) (select one) (select one) (select one) Activate Windows