Saved 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 Year Previous Year $215,000 94,080 121,000 57,000 6,100 57,900 17,370 $ 40,530 $183,000 90,000 93,000 49,800 6,100 37,100 11,130 $ 25,970 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (304) 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 $10) Retained Earnings Total Liabilities and Stockholders' Equity $ 96,985 38,000 46,000 116,000 $296,905 $ 63,000 1,525 61,000 125,525 102,600 68,780 $296,985 $ 17,000 33,000 59,000 126,000 $235,000 $ 32,900 1,550 61,000 95,450 102,600 36,950 $235,000 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 Dror Saved 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 4-a. Stockholders' equity totaled $121,000 at the beginning of the previous year. Compute the return on cquity (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? Current Year Return on Equity 13.7% previous year's financial statements, the company's stock price was $36 per share. Compute the P/E ratios for both year 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 4-a. 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. (Round your answers to 1 decimal place.) 4-5. Are the current year results better, or worse, than those for the previous year? 4-a Current Year Previous Year Return on Equity 13.71% 11.1 % 4-b. Current year return on equity ratio? Better Worse Required 3 Required 5 > previous year's financial statements, the company's stock price was $36 per share. Compute the P/E ratios for both year 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 5-a. 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. (Round your answers to 2 decimal places.) 5-b. Are the current year results better, or worse, than those for the previous year? Les b-a. Current Year Previous Year Fixed Asset Turnover 33.49 21.46 5-b. Current year fixed asset turnover? Better Worse 8. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $39. After the re previous year's financial statements, the company's stock price was $36 per share. Compute the P/E ratios for both years. 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 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. Current Year Previous Year Debt-to-Assets 20.45 25.96 6-b. Current year debt-to-assets ratio? Larger Proportion Smaller Proportion