Maxwell Corporation declared and paid a cash dividend of $7,425 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

	Current	Previous
Income Statement
Sales Revenue	$ 317,000	$ 261,000
Cost of Goods Sold	165,650	149,000
Gross Profit	151,350	112,000
Operating Expenses	58,600	48,930
Interest Expense	5,900	5,170
Income before Income Tax Expense	86,850	57,900
Income Tax Expense (30%)	26,055	17,370
Net Income	$ 60,795	$ 40,530
Balance Sheet
Cash	$ 65,745	$ 43,700
Accounts Receivable, Net	29,900	25,500
Inventory	44,000	41,000
Property and Equipment, Net	146,000	134,200
Total Assets	$ 285,645	$ 244,400
Accounts Payable	$ 36,500	$ 34,500
Income Tax Payable	4,425	3,750
Notes Payable (long-term)	96,400	111,200
Total Liabilities	137,325	149,450
Common Stock (par $1)	36,400	36,400
Retained Earnings	111,920	58,550
Total Liabilities and Stockholders Equity	$ 285,645	$ 244,400

5. Net property and equipment totaled $134,000 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 companys 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 Maxwell released its current-year financial statements, the companys stock was trading at $29. After the release of its previous-year financial statements, the companys stock price was $16 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Maxwells future success?

Current Previous $ 317,000 165,650 151,350 58,600 5,900 86,850 26,055 $ 60,795 $ 261,000 149,000 112,000 48,930 5,170 57,900 17,370 $ 40,530 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 Notes Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $ 65,745 29,900 44,000 146,000 $ 285,645 $ 36,500 4,425 96,400 137,325 36,400 111,920 $ 285,645 $ 43,700 25,500 41,000 134,200 $ 244,400 $ 34,500 3,750 111,200 149,450 36,400 58,550 $ 244,400 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 5-a. Net property and equipment totaled $134,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.) 5-b. Are the current-year results better, or worse, than those for the previous year? 5-a. Current Year 5-a Previous Year 5-b. Current year fixed asset turnover? Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 6-a. Current Year 6-a. Previous Year 6-b. Current year debt-to-assets ratio? Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 7-a. Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place.) 7-b. Are the current-year results better, or worse, than those for the previous year? 7-a. Current Year 7-a. Previous Year 7-b Current year times interest eamed ratio? Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 8-a. After Maxwell 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 $16 per share. Compute the P/E ratios for both years. (Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 8-b. Does it appear that investors have become more or less) optimistic about Maxwell's future success? Show less 8-a Current Year 8-a. Previous Year 8-b. Current year P/E ratio