Please complete all the questions below:

Tiger Audio declared and paid a cash dividend of $5,525 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

	Current						Previous
Income Statement
Sales Revenue	$	222,000				$	185,000
Cost of Goods Sold		127,650					111,000
Gross Profit		94,350					74,000
Operating Expenses		39,600					33,730
Interest Expense		4,000					3,270
Income before Income Tax Expense		50,750					37,000
Income Tax Expense (30%)		15,225					11,100
Net Income	$	35,525				$	25,900
Balance Sheet
Cash	$	40,000				$	38,000
Accounts Receivable, Net		18,500					16,000
Inventory		25,000					22,000
Property and Equipment, Net		127,000					119,000
Total Assets	$	210,500				$	195,000
Accounts Payable	$	27,000				$	25,000
Income Tax Payable		3,000					2,800
Note Payable (long-term)		75,500					92,200
Total Liabilities		105,500					120,000
Common Stock (par $1)		25,000					25,000
Retained Earnings		80,000					50,000
Total Liabilities and Stockholders Equity	$	210,500				$	195,000

Required:

1. (a) Compute the gross profit percentage in the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
2. (a) Compute the net profit margin for the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
3. (a) Compute the earnings per share for the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
4. Stockholders equity totaled $65,000 at the beginning of the previous year. (a) Compute the return on equity ratios for the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
5. Net property and equipment totaled $115,000 at the beginning of the previous year. (a) Compute the fixed asset turnover ratios for the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
6. (a) Compute the debt-to-assets ratios for the current and previous years. (b) Is debt providing financing for a larger or smaller proportion of the companys asset growth?
7. (a) Compute the times interest earned ratios for the current and previous years. (b) Are the current year results better, or worse, than those for the previous year?
8. After Tiger released its current year financial statements, the companys stock was trading at $17. After the release of its previous year financial statements, the companys stock price was $12 per share. (a) Compute the P/E ratios for both years. (b) Does it appear that investors have become more (or less) optimistic about Tigers future success?