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Use Global Filter Corp's financial statements to compute the required ratios below, and indicate whether the change from year to year is favourable or unfavourable.

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Use Global Filter Corp's financial statements to compute the required ratios below, and indicate whether the change from year to year is favourable or unfavourable. Al 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, Global For Corp Income Statement For Yours Ended December 31, 2014 2013 and 2012 2014 2013 2012 Sales 5514,500 $512,000 $577/100 Cost of goods sold 327.400 318.400 347 500 Gross profit from sales 187.100 193 600 229 300 Operating expenses 74.400 80,300 30 200 Income from operations 112 700 113300 141.000 Interest expense 5.300 4.700 4,450 Income before taxes 107 400 108,600 137 150 Income taxes 16.000 25,400 24 100 Net incomo $91,400 $83 200 $113050 10977 Clobal For Corp Balance Sheet Docomber 31, 2014, 2013 and 2012 Assets 2014 2013 2012 Casti $77,000 $80,100 $74500 Short-term investments 28,000 Accounts receivable, tot 26.000 30.000 37 400 32,400 31.100 Merchandise inventory 13.400 14.000 16,300 Prepaid expenses 6,100 5,000 5,000 Notes receivable, due in 2017 12.500 11000 11.000 Plant assets, net 312,000 384.000 325,000 Total assets $486.400 $554.000 $495.100 Liabilities and Equity Accounts payable $14.700 $17,700 $18.600 Salaries payable 11,500 13.600 15 800 Income taxes payable 9.550 8,650 7,850 Long-term note payable secured by mortgage on plant assets 63.000 70,000 62.000 Share capital 50 000 shares 200.000 200 000 240.000 Retained earnings 187650 244.050 150.850 Total liabilities and equity $406,400 $554.000 5495 100 2014 2013 Ratio Accounts receivable collection period Acid-est ratio Net profit ratio (9) Equity ratio) Return on equity (9) Analysis select one) (select one) select one) select one select one

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