3 The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 10 points Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (38%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable, Long-Term Total Liabilities Contributed Capital (9,000 shares) Retained Earnings Total Liabilities and Shareholders' Equity 2017 2016 $124,000 $113,000 57,600 53,600 66,400 59,400 40,200 3,600 37,200 3,600 22,600 18,600 6,780 5,580 $ 15,820 $13,020 $ 47,461 $13,740 33,000 39,000 32,000 34,000 87,000 97,000 $199,461 $183,740 $ 35,781 960 36,000 $30,180 460 36,000 72,741 66,640 90,000 90,000 36,720 27,100 $199,461 $183,740 One-half of all sales are on credit. *During 2017, cash dividends amounting to $6,200 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 2017 2016 % % 5-a. Net property and equipment totalled $102,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Fixed Asset Turnover 2017 2016 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Net Profit Margin 2017 % 2016 Debt-to- Assets 2017 2016 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Earnings per Share 2017 2016 Times Interest Earned 2017 2016 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 2017 % % 2016 times times 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $27.80. After the release of its 2016 financial statements, the company's share price was $22.70 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price/ Earnings 2017 2016