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, eee 96, cee 124, see 58, mee 6, 200 59,800 17,940 $ 41,860 $187,000 92,00 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 $12) Retained Earnings Total Liabilities and stockholders' Equity $ 98,210 39,000 47, see 117, see $ 301,210 $ 64,00 1,550 62, see 127,550 183, 2ee 70,460 $301,210 $ 16,000 34, eee 60, eee 127, eee $ 237,00 $ 32,800 1,6ee 62, eee 96,400 103, 200 37,400 $ 237,800 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) ratlos 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 ratlos 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? Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 1-a. 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? 1-a. Gross Profit Percentage 996 Current Year Previous Year 1-b. Current year gross profit percentage? Better Worse Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 2-a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.) 2-b. Are the current year results better, or worse, than those for the previous year? 2-a. Net Profit Margin % Current Year Previous Year 96 2-b. Current year net profit margin? Better Worse Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 3-a. Earnings per Share Current Year Previous Year 3-5. Current year EPS? Better Worse Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 6-a. Debt-to-Assets Current Year Previous Year 6-b. Current year debt-to-assets ratio? Larger Proportion Smaller Proportion 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 Current Year Previous Year 7-b. Current year times interest earned ratio? Better Worse 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 th release of its previous year's financial statements, the company's stock price was $37 per share. Compute the P/E ratios 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 le: 8-a. Price/Earnings Ratio Current Year Previous Year 8-b. Current year P/E ratio? More Optimistic Less Optimistic