Pinnacle Plus declared and paid a cash dividend of $8,200 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 $ 190,000 $ 163,000 Cost of Goods Sold 84,000 80,000 Gross Profit 106,000 83,000 Operating Expenses 52,000 45,800 Interest Expense 5,600 5,600 Income before Income Tax Expense 48,400 31,600 Income Tax Expense (30%) 14,520 9,480 Net Income $ 33,880 $ 22,120 Balance Sheet Cash $ 90,380 $ 22,000 Accounts Receivable, Net 33,000 28,000 Inventory 41,000 54,000 Property and Equipment, Net 111,000 121,000 Total Assets $ 275,380 $ 225,000 Accounts Payable $ 58,000 $ 33,400 Income Tax Payable 1,400 1,300 Note Payable (long-term) 56,000 56,000 Total Liabilities 115,400 90,700 Common Stock (par $10) 99,600 99,600 Retained Earnings 60,380 34,700 Total Liabilities and Stockholders Equity $ 275,380 $ 225,000 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 $116,000 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 $126,000 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 companys 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 years financial statements, the companys stock was trading at $34. After the release of its previous years financial statements, the companys stock price was $31 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?