Loos Associates declared and paid a cash dividend of $$6,425$ in the current year. Its comparative financial statements, prepared at December $31,$ reported the following summarized information:

Current Previous

Income Statement

Sales Revenue $ $267,000$ $ $221,000$

Cost of Goods Sold $145,650129,000$

Gross Profit $121,35092,000$

Operating Expenses $48,60040,930$

Interest Expense $4,9004,170$

Income before Income Tax Expense $67,85046,900$

Income Tax Expense $(30\%)20,35514,070$

Net Income $ $47,495$ $ $32,830$

Balance Sheet

Cash $ $52,195$ $ $40,700$

Accounts Receivable, Net $23,90020,500$

Inventory $34,00031,000$

Property and Equipment, Net $136,000126,200$

Total Assets $ $246,095$ $ $218,400$

Accounts Payable $ $31,500$ $ $29,500$

Income Tax Payable $3,6753,250$

Notes Payable $($long$-$term$)85,400101,200$

Total Liabilities $120,575133,950$

Common Stock $($par $$1)30,40030,400$

Retained Earnings $95,12054,050$

Total Liabilities and Stockholders$$ Equity $ $246,095$ $ $218,400$

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$$ equity totaled $$74,000$ 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 $$124,000$ 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 company$$s 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 Loos released its current$-$year financial statements, the company$$s stock was trading at $$29.$ After the release of its previous$-$year financial statements, the company$$s stock price was $$17$ per share. Compute the P$/$E ratios for both years. Does it appear that investors have become more $($or less$)$ optimistic about Loos$$s future success?