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 (308) 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 $10) 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 $ 34,100 950 49,000 84,050 95,400 31,550 $211,000 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 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 $109,000 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 $119,000 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 $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. 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 Required Required Required Required Required Required Required 1 2 3 4 5 6 7 8 1-a. Compute the gross profit percentage in the current and previous years. (Round your answers to 1 decimal place.) 1-b. Are the current year results better, or worse, than those for the previous year? 1- Gross Profit Percentage Current Year % Previous Year % a. 1- Current year gross profit b. percentage? OBetter OWorse Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required Required 1 2 3 5 6 7 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? Show less 2- Net Profit a. Margin Current Year % Previous % Year % 2. Current year net profit 6. margin Better Worse Required Required Required Required Required Required Required Required 1 2 3 5 6 7 8 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? Show less 3- Earnings a. per Share Current Year Previous Year 3- b. Current year EPS? Better Worse 5 Required Required Required Required Required Required Required Required 1 2 3 4 6 7 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-b. Are the current year results better, or worse, than those for the previous year? Show less Return on a. Equity Current Year % Previous Year 4- Current year return on b. equity ratio? Better O Worse Required Required Required Required Required Required Required Required 1 2 3 4 5 6 7 8 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? Show less Fixed 5- Asset a. Turnover Current Year Previous Year 5- Current year fixed asset b. turnover Better Worse Required Required Required Required Required Required Required Required 1 2 3 4 5 6 7 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? Show less 6- Debt-to- a. Assets Current Year Previous Year 6- Current year debt-to-assets b. ratio? OLarger Proportion OSmaller Proportion Required Required Required Required Required Required Required Required 1 2 3 4 5 6 7 8 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? Show less 7- Times Interest Earned Current Year Previous Year a. 7- Current year times interest eamed b. ratio? OBetter OWorse Required Required Required Required Required Required Required Required 1 2 3 5 6 7 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 Price/Earnings a. Ratio Current Year Previous Year 8- b. Current year P/E ratio? O More Optimistic Less Optimistic