Pinnacle Plus declared and paid a cash dividend of $8,300 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Yen Previous Year $ 195,000 86,00 109,000 $3,000 500 50, 380 15,090 S 35,210 $ 167.000 82,000 85,000 46,600 5200 32,700 9810 5 22,890 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (382) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable Clong-teem) Total Liabilities Common Stock (part 510) Retained Earnings Total Liabilities and Stockholders' Equity $ 91,685 34,000 42,00 112,000 $ 279,685 559 eee 1,425 57. eee 117,425 100, 200 62,50 $ 279,685 $ 21,000 29,000 55,800 122 BB $ 227,00 $ 39,300 1,35e 37,000 91,658 188, 200 35,15e $ 222,000 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 $117.000 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 $127.000 at the beginning of the previous yeat 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 years financial statements, the company's stock was trading at $35. After the release of its previous year's finansal statements, the company's stock price was $32 per share. Compute the PE ratios for both years. Does it appear that investors mave become more for less optimistic about Pinnacle's future success Complete this question by entering your answers in the tabs below. Rent BAO RA Reni 4 Rends Rad Road PA13-2 (Algo) Analyzing Comparative Financial Statements Using Selected Ratios [LO 13-4, 13-5] Pinnacle Plus declared and paid a cash dividend of $8,300 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Previous Current Year Year $ 195,000 86,888 109,00 53,000 5,700 50,308 15,090 $ 35,210 $ 167,080 82,880 85,000 46,600 5,700 32,700 9,810 $ 22,890 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (38x) 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 $19) Retained Earnings Total Liabilities and Stockholders' Equity $ 91,685 34,000 42,000 112,000 $ 279,685 $ 59,900 1,425 57,000 117,425 100, 200 62,060 $ 279,685 $ 21,000 29,000 55,000 122.000 $ 227,000 $ 33,300 1,350 57,000 91,650 100, 200 35,150 $ 227,000 Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better or worse than thos 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 previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better or worse than those fe Sear Farnings Total Liabilities and Stockholders' Equity 62,060 $ 279,685 35 150 $ 227,000 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 eamings 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 $117.000 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 $127,000 at the beginning of the previous year. Compute the fored 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 irgeres earned ratios for the current and previous years. Are the current year results better, or worse than those for the previous year? 8. Aner Pinnacle Plus released its current year's financial statements the company's stock was trading at $35. After the release of its previous year's financial statements, the company's stock price was 532 per share. Compute the P/E ratios for both years. Does it appear that investors have become more for 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 Required s 1- 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? Gross Profit Percentage Current Year Previous Year De here to search O 101 ce