Golden Corporation declared and paid $3,800 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Current Previous Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) $ 220,000 126,000 94,000 61,300 3,500 29, 200 8,760 $ 20,440 $197,000 116,000 81.000 56,800 3,400 20,800 3,800 $ 17,000 Current liabilities Note payable (long-term) Common stock (par $5) Additional paid-in capital Retained earnings $ 6,140 27,000 48,00 53,000 $134, 140 $ 16,500 53,000 34,800 6,600 23,240 $134, 140 $ 8,800 27,000 43,000 46,000 $124,800 $ 24,600 53,000 34,800 5,800 6,600 $124,800 Required: 1. Compute the gross profit percentage for the current and previous years. Are the current year results better, or worse, than those for the previous year? 2. 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? 3. 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? TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding, Common Stock equals the par value per share times the number of shares. 4. Stockholders' equity totaled $34,800 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? 5. Net property and equipment totaled $39,000 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? 6. 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? 7. 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? 8. After Golden released its current year's financial statements, the company's stock was trading at $38. After the release of its previous year's financial statements, the company's stock price was $29 per share. Compute the P/E ratios for both years. Does it appear that investors have become more or less) optimistic about Golden's future success