Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Total Liabilities Notes Payable (long-term) Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity Required: Current Year Previous Year $ 175,000 78,000 $ 151,000 74,000 97,000 77,000 49.000 43,400 5,300 5,300 42,700 12,810 $ 29,890 $ 86,465 30,000 38,000 108.000 $262,465 $ 55,000 53,000 SZE 60T 28,300 8,498 $ 19,810 $ 25,000 25,000 51,000 118,000 $ 219,000 $ 33,700 1,150 53,000 87,850 97,800 BSC CC $ 262,465 $ 219,000 1. 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? 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? 4. Stockholders' equity totaled $113,000 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? 5. Net property and equipment totaled $123,000 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 Cody Construction released its current year's financial statements, the company's stock was trading at $31. After the release of Its previous year's financial statements, the company's stock price was $28 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?