Use Oppong Corporation's financial statements to compute the required ratios below, 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.

Oppong CorporationIncome StatementFor Years Ended December 31, 2014, 2013, and 2012

20142013201 2

Sales$1,102,100$924,200$863,000

Cost of goods sold722,600633,300570,300

Gross profit from sales379,500290,900292,700

Operating expenses198,900174,700148,100

Income from operations180,600116,200144,600

Interest expense 2,5502,4002,300

Income before taxes178,050113,800142,300

Income taxes25,50020,00035,100

Net income$152,550$93,800$107,200

Oppong CorporationBalance SheetDecember 31, 2014, 2013, and 2012

Assets201420132012

Cash$44,900$50,500$46,500

Short-term investments 67,00073,00075,000

Accounts receivable, net52,40050,10044,300

Merchandise inventory23,40025,10030,800

Prepaid expenses 6,2005,7005,500

Notes receivable, due in 20177,5007,0007,000

Plant assets, net317,000377,000433,000

Total assets$518,400$588,400$642,100

Liabilities and Equity

Accounts payable $49,300$45,700$46,700

Salaries payable12,20011,00011,000

Income taxes payable10,3509,60011,000

Long-term note payable secured by mortgage on plant assets 83,00076,00077,000

Share capital, 200,000 shares140,000150,000170,000

Retained earnings 223,550296,100326,400

Total liabilities and equity$518,400$588,400 $642,100

RatioAnalysis

20142013 Analysis

Times interest earned ratio()

Current ratio

Number of days of sales in inventory

Net profit ratio (%)

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