The 2014 four-year comparative financial statements of Digital Shelf Space Corp. follow:

Required
1. Calculate the following for 2014 and 2013 and identify whether the ratios compare favorably (F) or unfavourably (U) from 2013 to 2014:
(a) acid-test ratio,
(b) Merchandise turnover,
(c) Accounts payable turnover,
(d) Debt ratio,
(e) Ratio of pledged assets to secured liabilities,
(f) Times interest earned,
(g) Profit margin,
(h) Return on total assets, and
(i) Book value per common share.
2. Prepare a trend analysis for 2011 (the base year) through to 2014 using the income statement information.
Analysis Component: Compare and explain the trend in cost of goods sold, operating expenses, and net income to the trend in net sales. Explain why retained earnings are constant over the fouryears.

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Digital Shelf Space Corp. Balance Sheet December 31 2014 33,349 $ 27,718 56,000 72,000 Assets 2013 2012 2011 23,267 20,938 40,000 17,200 3,784 344 784,000 Cash. 56,000 31,304 4,830 537 705,600 6,637 876 10,018 Prepaid expenses. 1,602 548,800 627,200 Liabilities and Equity Accrued wages payable. Long-term note payable, secured by Common shares, 180,000 shares 176,000 176,000 Total liabilities and equity.. 16,028 36,662 19,370 8,765 5,366 12,823 3,440 8,706 627,200 176,000 32,000 $769,976 $784,517 821,538 5866,266 571,200 176,000 32,000 32,000 32,000 Digital Shelf Space Corp. Income Statement For Years Ended December 31 2014 2013 2012 2011 500,864 320,553 27,552 36,662 331,822 175,302 30,912 241,488 107,328 34,272 19.370 12.8E2 189,200 Operating expenses 68,800 37,632 8,706