Golden Corporation declared and paid $5,500 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data:

Income Statement
Sales revenue	$	305,000			$	265,000
Cost of goods sold		160,000				150,000
Gross profit		145,000				115,000
Operating expenses		78,300				70,400
Interest expense		5,200				5,100
Income before income taxes		61,500				39,500
Income tax expense		18,450				5,500
Net income	$	43,050			$	34,000
Balance Sheet
Cash	$	6,550			$	10,500
Accounts receivable (net)		44,000				35,500
Inventory		65,000				60,000
Property and equipment (net)		70,000				63,000
	$	185,550			$	169,000
Current liabilities	$	13,000			$	36,500
Note payable (long-term)		70,000				70,000
Common stock (par $5)		45,000				45,000
Additional paid-in capital		10,000				7,500
Retained earnings		47,550				10,000
	$	185,550			$	169,000

Required:

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?

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? 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.

Stockholders equity totaled $45,000 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 $47,500 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 companys 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 Golden released its current years financial statements, the companys stock was trading at $55. After the release of its previous years financial statements, the companys stock price was $39 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Goldens future success?