Pinnacle Plus declared and paid a cash dividend of $7,200 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 Cost of Goods Sold $140,000 $123,000 64,000 60,000 Gross Profit 76,000 63,000 Operating Expenses 42,000 37,800 Interest Expense 4,600 4,600 Income before Income Tax Expense 29,400 20,600 Income Tax Expense (30%) 8,820 6,180 Net Income $ 20,580 $ 14,420 Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity $ 77,330 23,000 31,000 101,000 $232,330 $ 48,000 $ 32,000 18,000 44,000 111,000 $205,000 $ 34,400 800 1,150 46,000 46,000 95,150 81,200 93,600 93,600 43,580 30,200 $232,330 $205,000 Required: 1. 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? 2. 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? 3. 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? 4. Stockholders' equity totaled $106,000 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? 5. Net property and equipment totaled $116,000 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 company's 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 Pinnacle Plus released its current year's financial statements, the company's stock was trading at $24. After the release of its previous year's financial statements, the company's stock price was $21 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8