Igneous Gravel declared and paid a cash dividend of $7,825 in the current year Its comparative financial statements, prepared at December 31, reported the following summarized information Current Previous Income Statement Sales Revenue $ 337,000 $ 277,000 Cost of Goods Sold 173,650 157,000 Gross Profit 163,350 120,000 Operating Expenses 62,600 52,130 Interest Expense 6,300 5,570 Income before Income Tax Expense 94,450 62,300 Income Tax Expense (30 ) 28,335 18,690 Net Income $ 66,115 $ 43,610 Balance Sheet Cash $ 71,165 $ 44,900 Accounts Receivable, Net 32,300 27,500 Inventory 48,000 45,000 Property and Equipment, Net 150,000 137,400 Total Assets $ 301,465 $ 254,800 Accounts Payable $ 38,500 $ 36,500 Income Tax Payable 4,725 3,950 Notes Payable (long term) 100,800 115,200 Total Liabilities 144,025 155,650 Common Stock (par $1) 38,800 38,800 Retained Earnings 118,640 60,350 Total Liabilities and Stockholders Equity $ 301,465 $ 254,800 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 $88,000 at the beginning of the previous year Compute the return on equity 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 $138,000 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 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 Igneous released its current year financial statements, the companys stock was trading at $33 After the release of its previous year financial statements, the companys stock price was $17 per share Compute the P E ratios for both years Does it appear that investors have become more (or less) optimistic about Igneouss future success Prev Question

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Igneous Gravel declared and paid a cash dividend of $7,825 in the current year. Its comparative financial statements, prepared at December 31, reported the following

Igneous Gravel declared and paid a cash dividend of $7,825 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

	Current	Previous
Income Statement
Sales Revenue	$ 337,000	$ 277,000
Cost of Goods Sold	173,650	157,000
Gross Profit	163,350	120,000
Operating Expenses	62,600	52,130
Interest Expense	6,300	5,570
Income before Income Tax Expense	94,450	62,300
Income Tax Expense (30%)	28,335	18,690
Net Income	$ 66,115	$ 43,610
Balance Sheet
Cash	$ 71,165	$ 44,900
Accounts Receivable, Net	32,300	27,500
Inventory	48,000	45,000
Property and Equipment, Net	150,000	137,400
Total Assets	$ 301,465	$ 254,800
Accounts Payable	$ 38,500	$ 36,500
Income Tax Payable	4,725	3,950
Notes Payable (long-term)	100,800	115,200
Total Liabilities	144,025	155,650
Common Stock (par $1)	38,800	38,800
Retained Earnings	118,640	60,350
Total Liabilities and Stockholders Equity	$ 301,465	$ 254,800

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 $88,000 at the beginning of the previous year. Compute the return on equity 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 $138,000 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 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 Igneous released its current-year financial statements, the companys stock was trading at $33. After the release of its previous-year financial statements, the companys stock price was $17 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Igneouss future success?