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Pinnacle Plus declared and paid a cash dividend of $8,700 in the current year. Its comparative financial statements, prepared at December 31, reported the following

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Pinnacle Plus declared and paid a cash dividend of $8,700 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Year Year Income Statement Sales Revenue $215,000 94,000 121,000 57,000 $183,000 Cost of Goods Sold 90,000 93,000 49,800 6,100 37,100 11,130 $ 25,970 Gross Profit Operating Expenses Interest Expense Income before Incone Tax Expense Income Tax Expense (30%) 6,100 57,900 17,370 Net Income $ 40,530 Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net $ 96,905 38,e00 46,000 $ 17,000 33,000 59,000 126,000 116,000 $296,905 Total Assets $235,000 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings $ 63,000 1,525 61,000 125,525 102,600 68,780 $ 32,900 1,550 61,000 95,450 102,600 36,950 Total Liabilities and Stockholders' Equity $296,905 $235,000 search hp 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 $121,000 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 $131,000 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 $39. After the release of its previous year's financial statements, the company's stock price was $36 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 arch hp

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