Use Callaho Inc.'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. Sales Callaho Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 Cost of goods sold... Gross profit from sales... Operating expenses.... Income from operations. Interest expense... 2012 2014 2013 $1,011,400 $1,013,800 $1,117,700 564,800 609,700 607,800 446,600 404,100 509,900 235,000 203,800 191,800 211,600 200,300 318,100 5,100 5,400 6,650 Income before taxes.. 206,500 194,900 311,450 Income taxes. 37,400 37,600 56,100 Net income... $169,100 $157,300 $255,350 Callaho Inc. Balance Sheet December 31, 2014, 2013, and 2012 Assets Cash Short-term investments.. Accounts receivable, net... Merchandise inventory.... Prepaid expenses. Notes receivable, due in 2017. Plant assets, net... Total assets. 2014 2013 2012 $36,300 $38,700 $42,900 50,000 51,000 53,000 56,100 51,000 47,100 59,700 72,400 67,700 6,300 6,800 7,600 9,000 10,000 10,500 115,000 132,000 134,000 $332,400 $361,900 $362,800 Liabilities and Equity Accounts payable. Salaries payable.... Income taxes payable... $33,800 $30,200 $28,500 6,000 6,000 5,200 39,150 42,450 43,500 Long-term note payable secured by mortgage on plant assets Share capital, 50,000 shares.. 85,000 140,000 79,000 68,000 150,000 150,000 Retained earnings. Total liabilities and equity... Ratio Equity ratio (%)... Return on total assets (%)... Accounts receivable collection period. Return on equity (%) Current ratio... 28,450 54,250 67,600 $332,400 $361,900 $362,800 2014 2013 Analysis (select one) (select one) (select one) (select one) (select one) Activate Windows