Cody Construction declared and paid a cash dividend of $$7,100$ in the current year. Its comparative financial statements, prepared at December $31,$ reported the following summarized information:

Current Year Previous Year

Income Statement

Sales Revenue $ $135,000$ $ $119,000$

Cost of Goods Sold $62,00058,000$

Gross Profit $73,00061,000$

Operating Expenses $41,00037,000$

Interest Expense $4,5004,500$

Income before Income Tax Expense $27,50019,500$

Income Tax Expense $(30\%)8,2505,850$

Net Income $ $19,250$ $ $13,650$

Balance Sheet

Cash $ $76,025$ $ $33,000$

Accounts Receivable, Net $22,00017,000$

Inventory $30,00043,000$

Property and Equipment, Net $100,000110,000$

Total Assets $ $228,025$ $ $203,000$

Accounts Payable $ $47,000$ $ $34,500$

Income Tax Payable $1,125750$

Notes Payable $($long$-$term$)45,00045,000$

Total Liabilities $93,12580,250$

Common Stock $($par $$10)93,00093,000$

Retained Earnings $41,90029,750$

Total Liabilities and Stockholders$$ Equity $ $228,025$ $ $203,000$

Required:

Compute the gross profit percentage in the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the net profit margin for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the earnings per share for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Stockholders$$ equity totaled $$105,000$ at the beginning of the previous year. Compute the return on equity $($ROE$)$ ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Net property and equipment totaled $$115,000$ at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the debt$-$to$-$assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company$$s asset growth?

Compute the times interest earned ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

After Cody Construction released its current year$$s financial statements, the company$$s stock was trading at $$23.$ After the release of its previous year$$s financial statements, the company$$s stock price was $$20$ per share. Compute the P$/$E ratios for both years. Does it appear that investors have become more $($or less$)$ optimistic about Cody$$s future success?