Use the comparative statements from Application Problem 17-1 to complete this problem. 

Instructions: 

1. Based on CyberOptic's comparative financial statements prepared in Application Problem 17-1 and the information given in the text for Application Problem 17-1, calculate the following for each year.

a. Rate earned on average total assets

b. Rate earned on average stockholders' equity

c. Rate earned on net sales

d. Earnings per share

e. Price-earnings ratio 

2. For each analysis, indicate whether a favorable or an unfavorable trend occurred from the prior to the current year. Give reasons for these trends.

Data from Problem17-1

The comparative financial statements for CyberOptic Corporation are in the Working Papers. The financial statements have been completed up to the trend analysis section. The following information is taken from the financial records of CyberOptic for two consecutive fiscal years ended December 31.

Transcribed Image Text:

Accounts Receivable (book value), January 1 Total Assets, January 1 Total Stockholders' Equity, January 1 Market Price per Share of Stock, December 31 Current Year $ 76,820.00 670,670.00 350,040.00 23.50 Prior Year $ 69,450.00 544,200.00 314,840.00 16.50