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6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a

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6-a. Compute the debt-to-assets ratios for the current and previous years. (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? Debt-to-Assets Current Year Previous Year 6-B. Current year debt-to-assets ratio? Larger Proportion Smaller Proportion Required 5 Required 7 > G E VUS years. Are the current year results better, or worse, than those for the previous year? 6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 7. Compute the times interest earned ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year? 8. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $21. After the release of its previous year's financial statements, the company's stock price was $18 per share. Compute the P/E ratios for both years. Does it appear that investors have become more or less) optimistic about Pinnacle's future success? Pinnacle Plus declared and paid a cash dividend of $6,900 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $125,000 58,000 67.000 39.000 4,300 23,700 $111,000 54,000 57,000 35,400 4,300 17,300 5,190 $ 12, 110 2,110 $ 16,590 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (301) 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 Common Stock (par $10 ) Retained Earnings Total Liabilities and Stockholders' Equity $ 73, 415 20,000 28,000 98,000 $219,415 $ 45,000 1,075 43,000 89,075 91,800 38,540 18.41 $ 35.000 15,000 41,000 108,000 $199,000 $34.700 650 43.000 78.350 91,800 28.850 $199,000 Required

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