Pinnacle Plus declared and paid a cash dividend of $8.800 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $220,00 96,000 124, eee 58,888 6, 200 59,808 17,940 $ 41,868 $187,000 92, eee 95,000 50,600 6,200 38,200 11,460 $ 26, 740 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 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 $ 98,210 39, eee 47,00 117,000 $301,210 $ 64, eee 1,550 62, eee 127,550 183, 288 70,468 $301,210 $ 16,eee 34,00 60, eee 127,000 $237,00 $ 32,800 1,600 62, ee 96,400 103, 200 37,40e $237, eee 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 $122,000 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 $132.000 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 $40. After the release of its previous year's financial statements, the company's stock price was $37 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? Answer is complete but not entirely correct. 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 3- a. 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? Earnings per Share Current Year 3.20 % Previous 1.80 X Year IS IS 3- b. Current year EPS? Better Worse Answer is complete but not entirely correct. 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 4-a. Stockholders' equity totaled $122,000 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? 4- a. Current Year Return on Equity 24.1 % % 19.0 X % Previous Year 4- b. Current year return on equity ratio? Better Worse Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 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? 7- a. Times Interest Earned 0.1 x 0.1 Current Year Previous Year 7- b. Current year times interest earned ratio? Better Worse Answer is complete but not entirely correct. 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 8-a. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $40. After the release of its previous year's financial statements, the company's stock price was s37 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 8- Price/Earnings Ratio 12.5 Current Year Previous Year 20.6 % 8- b. Current year P/E ratio? More Optimistic Less Optimistic Poquimod 7 Pinnacle Plus declared and paid a cash dividend of $8.800 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $220,00 96,000 124, eee 58,888 6, 200 59,808 17,940 $ 41,868 $187,000 92, eee 95,000 50,600 6,200 38,200 11,460 $ 26, 740 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 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 $ 98,210 39, eee 47,00 117,000 $301,210 $ 64, eee 1,550 62, eee 127,550 183, 288 70,468 $301,210 $ 16,eee 34,00 60, eee 127,000 $237,00 $ 32,800 1,600 62, ee 96,400 103, 200 37,40e $237, eee 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 $122,000 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 $132.000 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 $40. After the release of its previous year's financial statements, the company's stock price was $37 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? Answer is complete but not entirely correct. 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 3- a. 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? Earnings per Share Current Year 3.20 % Previous 1.80 X Year IS IS 3- b. Current year EPS? Better Worse Answer is complete but not entirely correct. 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 4-a. Stockholders' equity totaled $122,000 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? 4- a. Current Year Return on Equity 24.1 % % 19.0 X % Previous Year 4- b. Current year return on equity ratio? Better Worse Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 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? 7- a. Times Interest Earned 0.1 x 0.1 Current Year Previous Year 7- b. Current year times interest earned ratio? Better Worse Answer is complete but not entirely correct. 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 8-a. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $40. After the release of its previous year's financial statements, the company's stock price was s37 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 8- Price/Earnings Ratio 12.5 Current Year Previous Year 20.6 % 8- b. Current year P/E ratio? More Optimistic Less Optimistic Poquimod 7