nces According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Zigga Manufacturing for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required: 2018 $ 120,000 70,000 2017 $ 150,000 79,500 50,000 70,500 38,000 41,000 700 575 11,300 28,925 2,500 $8,800 7,000 $ 21,925 1. Compute the gross profit percentage for each year. Assuming that the change from 2017 to 2018 is the beginning of a sustained trend, is Zigga likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain whether Zigga did a better or worse job of controlling operating expenses in 2018 relative to 2017. 3. Zigga reported average net fixed assets of $56,200 in 2018 and $47,100 in 2017. Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017? 4. Zigga reported average stockholders' equity of $56,000 in 2018 and $42,800 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 than in 2017?