Pinnacle Plus declared and paid a cash dividend of $7,500 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $155,000 70,000 85,000 45,000 4,900 35, 100 10.530 $ 24,570 $135,000 66,000 69,000 40,200 4,900 23,900 7,170 $ 16,730 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (304) Net Income 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 $18) Retained Earnings Total Liabilities and Stockholders' Equity $ 81,245 26,000 34,000 104,000 $245, 245 $ 51,000 1,225 49,000 101,225 95,400 48,620 $245, 245 $ 29,000 21,000 47,000 114,000 $211,000 5 34,100 950 49,000 84,050 95,400 31,550 $211,000 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 1-a. Compute the gross profit percentage in the current and previous years. (Round your answers to 1 decimal place.) 1-5. Are the current year results better, or worse, than those for the previous year? Gross Profit 1-a Porcentage Current Year % Previous Year % 1-b. Current year gross profit percentage? Botter Worse 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 2-a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.) 2-b. Are the current year results better, or worse, than those for the previous year? 2-a Net Profit Margin Current Year % Previous Year 2-6. Current year net profit margin? Botter Worse Complete this question by entering your answers in the tabs below. Required 2 Required Required 7 Required 8 Required Required 1 Required 3 Required 4 3-a. Compute the earnings per share for the current and previous years. (Round your answers to 2 decimal places.) 3-b. Are the current year results better, or worse, than those for the previous year? Earnings per Share Current Year Previous Year 3.5 Current year EPS? Botter Worse Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 4-a. Stockholders' equity totaled $109,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your answers to 1 decimal place. 4-6. Are the current year results better, or worse, than those for the previous year? 4-a Current Year Previous Year Return on Equity % % 4-5. Current year return on equity ratio? Better Worse Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 1 Required 3 Required 5 Required 6 Required 8 Required 7 5-a. Net property and equipment totaled $119,000 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 Fixed Asset Turnovor Current Year Previous Year 5-b Current year fixed asset tumover? Better Worse 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 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 Debt-to-Assets Current Year Previous Year 6-b. Current year debt-to-assets ratio? Larger Proportion OSmaller Proportion 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 B 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. Times Interest Earned Current Year Previous Year 7-b. Current year times interest earned ratio? Better Worte 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 8-a. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $27. After the release of its previous year's financial statements, the company's stock price was $24 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 PricelEarnings 8-a Ratio Current Year Previous Year B-b. Current year P/E ratio? More Optimistic Less Optimistic