According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipn

fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of In

Peripherals for the year ended December 31. 2018.

Required:

1. Compute the gross profit percentage for each year. Assuming that the change from 2017 to 2018 is the beginning of a sustained

trend, is Inigo likely to earn more or less gross profit from each dollar of sales in 2019?

2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain whether Zigga did a better

or worse job of controlling operating expenses in 2018 relative to 2017.

3. Inigo reported average net fixed assets of $54,600 in 2018 and $45,500 in 2017. Compute the fixed asset turnover ratios for both

years. Did the company better utilize its investment in fixed assets to generate revenues in 2018

OyCatchu 1, 2010 Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2018 $ 104,000 62,000 42,000 36,400 540 5,060 1,000 $ 4,060 2017 $ 126,000 73,180 52,900 37,880 495 14,605 5,400 $ 9, 205 Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2017 to 2018 is the trend, is Inigo likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain or worse job of controlling operating expenses in 2018 relative to 2017 3. Inigo reported average net fixed assets of $54.600 in 2018 and $45,500 in 2017. Compute the fixed as years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 20 A Inico reported average stockholders' equity of $54.400 in 2018 and $41,200 in 2017. The company has rester returns for stoc Required 1 Required 2 Required 3 Required 4 1-a. Compute the gross profit percentage for each year. (Round percentage values to 1 decimal place.) 1-b. Assuming that the change from 2017 to 2018 is the beginning of a sustained trend, Is Inigo likely to sam gross profit from each dollar of sales in 2019? % 1-a 2017 1-a. 2018 1-b. Likely to earn in 20192 % Reuled Required 2 > Required 1 Required 2 Required 3 Required 4 2-a. Compute the net profit margin for each year. (Round percentage values to 1 decimal place) 2-b. Did Inigo do a better or worse job of controlling operating expenses in 2018 relative to 2017 2-a 2017 ces % 2-a. 2018 2-b. Controlling operating expenses in 2018 vs 2017? Drav 2 of 5 Next > is question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 3-a. Inigo reported average net fixed assets of $54,600 in 2018 and $45,500 in 2017. Compute the found for both years. (Round your answers to 2 decimal place.) 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2018 2017 3-a. 2017 3-a 2018 3-b Investment better utilized? Required 2 Required 4 > the tabs below Required 1 Required 2 Required 3 Required 4 4-a. Inigo reported average stockholders' equity of $54,400 in 20 and $41,200 in 2017. The company has not bed preferred stock. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place) 4-b. Did the company generate greater returns for stockholders in 2018 than in 2017? % Ja 2017 -a 2018 -b Greater returns generated in 2018?