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According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January

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According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019 ? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017 ? 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 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 or 2017 ? 4. Gonzalez reported average stockholders' equity of $54,500 in 2018 and $41,300 in 2017 . The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockhoiders in 2018 than in 2017? 1-a. Compute the gross profit percentage for each year. Note: Round percentage values to 1 decimal place. 1-b. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2-a. Compute the net profit margin for each year. Note: Round percentage values to 1 decimal place. 2-b. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? 3-a. Gonzalez reported average net fired assets of $54,700 in 2018 and $45,600 in 2017 . Compute the fixed asset turnover ratios for both years. Note: Round your answers to 2 decimal places. 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017 ? 4-a. Gonzalez reported average stockholders' equity of $54,500 in 2018 and $41,300 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Note: Round your answers to 1 decimal place. 4-b. Did the company generate greater returns for stockholders in 2018 than in 2017

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