Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year Its comparative financial statements, prepared at December 31, reported the following summarized information Current Year Previous Year Income Statement Sales Revenue $ 110,000 $ 99,000 Cost of Goods Sold 52,000 48,000 Gross Profit 58,000 51,000 Operating Expenses 36,000 33,000 Interest Expense 4,000 4,000 Income before Income Tax Expense 18,000 14,000 Income Tax Expense (30 ) 5,400 4,200 Net Income $ 12,600 $ 9,800 Balance Sheet Cash $ 69,500 $ 38,000 Accounts Receivable, Net 17,000 12,000 Inventory 25,000 38,000 Property and Equipment, Net 95,000 105,000 Total Assets $ 206,500 $ 193,000 Accounts Payable $ 42,000 $ 35,000 Income Tax Payable 1,000 500 Note Payable (long term) 40,000 40,000 Total Liabilities 83,000 75,500 Common Stock (par $10) 90,000 90,000 Retained Earnings 33,500 27,500 Total Liabilities and Stockholders Equity $ 206,500 $ 193,000 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 $100,000 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 Net property and equipment totaled $110,000 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 Pinnacle Plus released its current years financial statements, the companys stock was trading at $18 After the release of its previous years financial statements, the companys stock price was $15 per share Compute the P E ratios for both years Does it appear that investors have become more (or less) optimistic about Pinnacles future success

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Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year. Its comparative financial statements, prepared at December 31, reported the following

Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

	Current Year		Previous Year
Income Statement
Sales Revenue	$	110,000	$	99,000
Cost of Goods Sold		52,000		48,000
Gross Profit		58,000		51,000
Operating Expenses		36,000		33,000
Interest Expense		4,000		4,000
Income before Income Tax Expense		18,000		14,000
Income Tax Expense (30%)		5,400		4,200
Net Income	$	12,600	$	9,800
Balance Sheet
Cash	$	69,500	$	38,000
Accounts Receivable, Net		17,000		12,000
Inventory		25,000		38,000
Property and Equipment, Net		95,000		105,000
Total Assets	$	206,500	$	193,000
Accounts Payable	$	42,000	$	35,000
Income Tax Payable		1,000		500
Note Payable (long-term)		40,000		40,000
Total Liabilities		83,000		75,500
Common Stock (par $10)		90,000		90,000
Retained Earnings		33,500		27,500
Total Liabilities and Stockholders Equity	$	206,500	$	193,000

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 $100,000 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?
Net property and equipment totaled $110,000 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 Pinnacle Plus released its current years financial statements, the companys stock was trading at $18. After the release of its previous years financial statements, the companys stock price was $15 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Pinnacles future success?