Pinnacle Plus declared and paid a cash dividend of $6,900 in the current year Its comparative financial statements, prepared at Current 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 $125,800 $111,880 54,000 57,800 58,080 67,000 39,680 4,380 23,780 35,48 4,300 17,3e0 7,110 5,198 $ 16,598 12,110 Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets 73,415 35,e80 15,800 41,008 98,88818880 28,080 28,000 $219,415 $199,800 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1e) Retained Earnings 34,780 s 45,080 1,875 43,080 89,075 91,808 650 43,000 78,350 91,800 38,54628,858 Total Liabilities and Stockholders' Equity 5219,415 $199,000 Required 1 Required 2 Required 3 Required 4 Required 5 Require eBook Print References 1-a. Compute the gross profit percentage in the current and previous years. (Ro 1-b. Are the current year results better, or worse, than those for the previous ye Gross Profit Percentage 1-a Current Year Previous Year 1-b Current year gross profit percentage? OBetter OWorse Required 2 > 2-a. Comput 2-b. Are the current year results better, or worse, than those for the previous year? int e the net profit margin for the current and previous years. (Round your answers to 1 decimal place ences 2-a Net Profit Margin Current Year Previous Year 2-b. Current year net profit margin? Better OWorse K Required 1 Required 3> 10 polnts Required 1 quired 2 Required 3 Required 4 Required 5 Required 6 Required 7 Requi eBook 3-a. Compute the earnings per share for the current and previous years. (Round your answers to 2 decimal 3-b. Are the currnt year results better, or worse, than those for the previous year? Print References 3- Share Current Year Previous Year 3-b. Current year EPS? Better Worse K Required 2 Required 4 > points Required 1 Required 2 Required 3 Req 4OO eBook Print References 4-a. Stockholders' equity totaled $103,000 at the beginning of the previous year. Compute the return for the current and previous years. (Round your answers to 1 decimal place.) 4-b. Are the current year results better, or worse, than those for the previous year? 4-a Return on Equity Current Year Previous Year 4-b. Current year return on equity ratio? Better Worse C Required 3 Required 5> Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 ok 5-a. Net property and equipment totaled $113,000 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.) S-b. Are the current year results better, or worse, than those for the previous year? nt ences Fixed Asset Turnover i 5- Current Year Previous Year 5-b. Current year fixed asset turnover? Better OWorse K Required 4 Required 6> Required 1 Required 2 Required 3 Required 4 Required 5 ed 6 Required 7 Required 8 ok pute the debt to -assets ratios for the current and previous years. (Round your answers to 2 decimal places.) nt 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? ences 6- Debt-to-Asset Current Year Previous Year 6-b. Current year debt-to-assets ratio? Larger Proportion OSmaller Proportion K Required 5 Required 7 > Required 8 7-a. Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decima 7-b. Are the current year results better, or worse, than those for the previous year? Times Interest Earned -a Current Year Previous Year Current year times interest earned ratio? OBetter OWorse 7-b Required 6 Required 8 > Required 8 8-a. After Pinnacle Plus released its current year release of its previous year's financial statements, the compa r's financial statements, the company's stock was trading at $21. After the ny's stock price was $18 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 Pinnacle's future success? Show lesS 8- Ratio Current Year Previous Year 8-b. Current year P/E ratio? More Optimistic OLess Optimistic K Required 7
