The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue Cost of Goods Sold $ 130,000 $119,000 60,000 56,000 Gross Profit Operating Expenses Interest Expense 70,000 42,000 63,000 39,000 3,000 3,000 Income before Income Tax Expense 25,000 21,000 Income Tax Expense (30%) 7,500 6,300 $ 17,500 $ 14,700 Net Income Balance Sheet $ 50,147 $ 17,700 42,000 28,000 85,000 Cash Accounts Receivable, Net Inventory Property and equipment, Net 27,000 35,000 75,000 Total Assets $ 187,147 $172,700 $ 24,847 $ 22,800 Accounts Payable Income Ta yable Note Payable, Long-Term 900 400 30,000 30,000 Total Liabilities 55,747 53,200 93,000 93,000 38,400 Contributed Capital (9,300 shares) Retained Earningst 26,500 Total Liabilitien and Shareholders' Equity $ 187,147 $ 172,700 One-half of all sales are on credit. 'During 2017, cash dividends amounting to $5,600 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) Gross Profit Percentage 53.9 % 2017 2016 52.9 % 1-b. Is the trend going in the right direction? Yes O No 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit Margin 2017 13.5 2016 12.4 % 2-b. Is the trend going in the right direction? O No Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 $ 2016 1.88 1.58 3-b. Does the trend look good or bad? Good O Bad 2-b. Is the trend going in the right direction? ONo Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 S 2016 1.68 1.58 3-b. Does the trend look good or bad? Good O Bad 4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Return on Equity 17 2016 4-b. Is the trend going in the right direction? O Yes ONo S-a. Net property and equipment totaled $90,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Fixed Asset Turnever 2017 2016 5-b. Is the trend going in the right direction? ONo O Yes 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Dubt-to Asseta 2017 2016 6-b. is debt providing financing for a larger or smaller proportion of the company's asset growth? O Larger proportion OSmaller proportion 7.a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned imes 2017 2016 imes 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? O Bad O Good 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $19.50. After the release of its 2016 financial statements, the company's share price was $17.00 per share. Compute the PIE ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? OLess optimistic O More optimistic