Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5-a. Net property and equipment totalled $100,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016 . (Round your
5-a. Net property and equipment totalled \\$100,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016 . (Round your answers to 2 decimal places.) 5-b. Is the trend going in the right direction? Yes No 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) 2-b. Is the trend going in the right direction? No Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) 3-b. Does the trend look good or bad? Good 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.) 4-b. Is the trend going in the right direction? Yes No \"One-half of all sales are on credit. During 2017, cash dividends amounting to \\( \\$ 6,100 \\) were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) 1-b. Is the trend going in the right direction? No Yes 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? Good Bad 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at \\( \\$ 26.40 \\). After the release of its 2016 financial statements, the company's share price was \\( \\$ 21.40 \\) per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? More optimistic Less optimistic 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Larger proportion Smaller proportion 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started