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
Income Statement
Sales Revenue	$	155,000			$	135,000
Cost of Goods Sold		70,000				66,000
Gross Profit		85,000				69,000
Operating Expenses		45,000				40,200
Interest Expense		4,900				4,900
Income before Income Tax Expense		35,100				23,900
Income Tax Expense (30%)		10,530				7,170
Net Income	$	24,570			$	16,730
Balance Sheet
Cash	$	81,245			$	29,000
Accounts Receivable, Net		26,000				21,000
Inventory		34,000				47,000
Property and Equipment, Net		104,000				114,000
Total Assets	$	245,245			$	211,000
Accounts Payable	$	51,000			$	34,100
Income Tax Payable		1,225				950
Note Payable (long-term)		49,000				49,000
Total Liabilities		101,225				84,050
Common Stock (par $10)		95,400				95,400
Retained Earnings		48,620				31,550
Total Liabilities and Stockholders Equity	$	245,245			$	211,000

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 $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?

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?

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 $27. After the release of its previous years financial statements, the companys 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 Pinnacles future success?