According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipmen fell 3.8 percent between January and December 2016. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31,2016. 2016 2015 Sales Revenue $118,000 $147,000 Cost of Goods Sold 69,000 78,700 Gross Profit 49,000 68,300 Selling, General, and Administrative Expenses 37 , 800 4D , 600 Interest Expense 680 565 Income before Income Tax Expense 10,520 27, 135 Income Tax Expense 2,500 6,800 Net Income $ 8,020 $ 20,335 Required: 1. Compute the gross prot percentage for each year. Assuming that the change from 2015 to 2016 is the beginning ofa sustained trend, is Computer Tycoon likely to earn more or less gross profit from each dollar of sales in 2017? 2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain whether Computer Tycoon did a better or worsejob of controlling operating expenses in 2016 relative to 2015. 3. Computer Tycoon reported average net fixed assets of $56,000 in 2016 and $46,900 in 2015. Compute the xed asset turnover ratios for both years. Did the company better utilize its investment in xed assets to generate revenues in 2016 or 2015? 4. Computer Tycoon reported average stockholders' equity of $55,800 in 2016 and $42,600 in 2015. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2016 than in 2015? 1-a. Gross Profit Percentage 2015 % 2016 % 1-b. Likely to earn in 2017? More Gross Profit OLess Gross Profit4-a. Return on Equity (ROE) 2015 % 2016 % 4-b. Greater returns generated in 2016? O Yes O No