Use Callaho Inc.'s financial statements to compute the acid-test ratio, 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. Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 $710,000 $612,800 $618,000 434,400 410,700 362,300 275,600 202,100 255,700 93,500 199,200 172,000 82,100 2,900 83,700 Cost of goods Gross profit from sales Income from operations Interest expense Income before taxes Income taxes Net income 2,100 82,850 300 16,500 $72.150 $1,800 $66,350 81,450 9,300 Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 2012 $28,300 $30,000 $25,300 44,000 45,000 38,000 38,300 44,000 44,200 32,200 37400 41,900 6,600 6,500 7,000 4,000 5,500 5,500 196,000 230,000 220,000 $349,400 $398,400 $381,900 Short-term investments Accounts receivable, Merchandise inventory Prepaid expenses Notes receivable, due in 2017 Plant assets, Total assets $24,600 $30,700 $26,900 3,800 4,300 3,900 3,600 3,650 3,800 Long-term note payable secured by mortgage on plant assets 71,000 2,000 71,000 220,000 270.000 270,000 6,300 $349,400 $398,400 $381,900 Salaries payable Income taxes payable Share capital, 100,000 shares Retained eamings Total iabilties and equity 26,400 27,750 Ratio 2014 2013 Acid-test ratio (select one)