PRONGHORN CORPORATION Income Statements For the Years Ended December 31 2017 2016 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) 182,000 Net income $744,000$604,000 42,000 32,000 702,000572,000 429,000 354,000 273,000 218,000 152,000 $91,000 66,000 Additional information: 1. The market price of Pronghorn's common stock was $7.00, $7.50, and $8.50 for 2015, 2016, and 2017, respectively 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2016 and 2017, (Round all answers to 2 decimal places, eg, 1.83 or 1.83%.) 2017 2016 Profit margin 12.2311 % 10.9211% Gross profit rate 36.691 % 36.0911 % Asset turnover 1.1 times 1.04 times Earnings per share 2.80 2.10 Price-earnings ratio 3.03 times 3.57 times Payout ratio Debt to assets ratico 27.941 % PRONGHORN CORPORATION Income Statements For the Years Ended December 31 2017 2016 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) 182,000 Net income $744,000$604,000 42,000 32,000 702,000572,000 429,000 354,000 273,000 218,000 152,000 $91,000 66,000 Additional information: 1. The market price of Pronghorn's common stock was $7.00, $7.50, and $8.50 for 2015, 2016, and 2017, respectively 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2016 and 2017, (Round all answers to 2 decimal places, eg, 1.83 or 1.83%.) 2017 2016 Profit margin 12.2311 % 10.9211% Gross profit rate 36.691 % 36.0911 % Asset turnover 1.1 times 1.04 times Earnings per share 2.80 2.10 Price-earnings ratio 3.03 times 3.57 times Payout ratio Debt to assets ratico 27.941 %