Assume the average cost of computer equipment fell 21.6 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.

	2017			2016
Sales Revenues	$	100,000		$	124,121
Cost of Goods Sold		61,500			74,473
Gross Profit		38,500			49,648
Selling, General, and Administrative Expenses		31,000			31,000
Interest Expense		560			400
Income Before Income Tax Expense		6,940			18,248
Income Tax Expense		3,000			5,742
Net Income	$	3,940		$	12,506

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 $70,500 in 2017 and $66,000 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 $61,500 in 2017 and $48,300 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 choice

Yes