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Assume the average cost of computer equipment fell 2 1 . 2 percent between 2 0 1 6 and 2 0 1 7 . Lets

Assume the average cost of computer equipment fell 21.2 percent between 2016 and 2017. Lets see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31,2017.20172016 Sales Revenues$98,600 $122,000 Cost of Goods Sold 60,60073,700 Gross Profit 38,00048,300 Selling, General, and Administrative Expenses 34,20034,200 Interest Expense 542428 Income Before Income Tax Expense 3,25813,672 Income Tax Expense 1,6005,146 Net Income$1,658 $8,526 Required:1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.)1-b. Not available in Connect. 2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.)2-b. Not available in Connect. 3-a. Computer Tycoon reported average net fixed assets of $57,700 in 2017 and $59,100 in 2016. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.)3-b. Not available in Connect. 4-a. Computer Tycoon reported average shareholders equity of $57,500 in 2017 and $44,300 in 2016. 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 shareholders in 2017 than in 2016? multiple choiceYesNo

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