Use Ludwig 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. Ludwig Inc. Income Statement For Years Ended December 31, 2014, 2013, and 2012 Sales... Cost of goods sold... Gross profit from sales... Operating expenses.. Income from operations... Interest expense. Income before taxes.. Income taxes. Net income... 2014 2013 $778,100 $889,800 $998,800 656,500 732,600 862,500 121,600 157,200 136,300 38,400 47,400 50,700 83,200 109,800 4,850 78,350 104,450 2012 85,600 5,350 5,300 80,300 11,000 25,700 8,200 $67,350 $78,750 $72,100 Ludwig 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. Liabilities and Equity Accounts payable... Salaries payable.... 2014 2013 2012 $20,300 $23,300 $22,800 82,000 84,000 98,000 36,300 43,300 44,500 64,100 76,300 67,900 3,900 3,900 4,200 9,500 10,000 11,000 169,000 191,000 198,000 $385,100 $431,800 $446,400 5,250 $27,300 $32,600 $36,500 13,100 16,100 17,200 4,800 128,000 4,450 133,000 Income taxes payable... Long-term note payable secured by mortgage on plant assets 106,000 Share capital, 200,000 shares.. Retained earnings... Total liabilities and equity... 190,000 170,000 180,000 43,450 80,300 75,250 $385,100 $431,800 $446,400 Ratio Current ratio... Equity ratio (%).. Accounts receivable collection period... Debt ratio (%).. Net profit ratio (%).. 2014 2013 Analysis (select one) (select one) (select one) (select one) (select one) Activate Windows