E13-4 Computing Profitability Ratios (LO 13-4, LO 13-5) 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 2016 Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Selling. General, and Administrat Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2015 10 201 is the beginning of a sustained trend, is Computer Tycoon key to earn more or less gross profit from school of sales in 2017 2. Compute the net profit margin for each year Give your calculations here and in requirement t explain whether Computer Tycoon did a better or worse job of controlling operating expenses in 2016 relato 2015 3. Computer Tycoon reported average net fixed assets of $54300 n 2016 and $45200 in 2015. Compute the feed asset turnove ratios for both years. Did the company better til vestment in fixed assets to generate revenues 2016 OF 2015 4. Computer Tycoon reported average stockholders equity of 554.100 in 2016 and $40.900 in 2015. The company has not issued pretened stock Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2016 than in 2015? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place 1-b. Assuming that the change from 2015 to 2016 is the beginning of a sustained trend, is Computer Tycoon likely to eam more or less gross profit from each dollar of sales in 2017 Gross Profit Percentage 10B Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.) 2-b. Did Computer Tycoon do a better or worse job of controlling operating expenses in 2016 relative to 2015 Net Profit Margin 2015 2018 2.. Controlling operating expenses in 2016 vs 2015? Better Job Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Regred 4 3-a. Computer Tycoon reported average net fored assets of $54,300 in 2016 and $45.200 in 2015. Compute the foued asset turnover ratios for both years. (Round your answers to 2 decimal place) 3-b. Did the company better utilize its investment in foed assets to generate revenues in 2016 or 20157 3- Fixed Asset 3- Investment better 20 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 4. Computer Tycoon reported average stockholders' equity of $54.100 in 2016 and $40.000 16.2015. The company has issued preferred stock. Compute the return on equity ratios for both year. (Round your answers to 1 decimal place) 4-b. Did the company generate greater returns for stockholders in 2016 than in 2015 Greater returns generated in 2010 Yes