Assume the average cost of computer equipment fell 35.0 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	$	78,600		$	117,250
Cost of Goods Sold		41,000			58,000
Gross Profit		37,600			59,250
Selling, General, and Administrative Expenses		32,100			32,100
Interest Expense		563			400
Income Before Income Tax Expense		4,937			26,750
Income Tax Expense		2,931			4,426
Net Income	$	2,006		$	22,324

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 $59,200 in 2017 and $56,000 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 $59,000 in 2017 and $45,800 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

• No