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The comparative financial statements prepared at December 31, 2014, for Pinnacle Plus showed the following summarized data: 2014 2013 Income Statement Sales Revenue $116,000 $105,000 Cost of Goods Sold 54,400 50,400 Gross Profit Operating Expenses Interest Expense 61,600 37,800 4,600 54,600 34.800 4.600 Income before Income Tax Expense Income Tax Expense (30%) 19,200 5,760 15.200 4.560 Net Income $ 13,440 $ 10,640 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment. Net $ 59,742 43,000 29,000 107,000 $ 15,740 35.000 44,000 117.000 Total Assets $237,742 $ 211,740 Accounts Payable Income Taxes Payable Note Payable, Long Term $ 63,342 1,060 46,000 $ 44,080 560 46.000 Total Liabilities Contributed Capital (9.300 shares) Retained Earningst 110.402 93,000 34,340 90,640 93.000 29,100 Total Liabilities and Shareholders' Equity $237,742 $ 211,740 One-half of all sales are on credit During 2014, cash dividends amounting to $7,200 were declared and paid. Required: 1.a. Compute the gross profit percentage in 2014 and 2013. (Round your answers to 1 decimal place.) Gross Profit Percentage 2014 1-b. Is the trend going in the right direction? Yes ONO 2-a. Compute the net profit margin for 2014 and 2013. (Round your answers to 1 decimal place.) Net Profit Margin 2014 2013 2 b. Is the trend going in the right direction? O No O Yes 3-a. Compute the carnings per share for 2014 and 2013. Round your answers to 2 decimal places.) Earnings per Share 2013 3-b. Does the trend look good or bad? Good O Bad 4-a. Shareholders equity totalled $100.000 at the end of 2012. Compute the return on cquity (ROE) ratios for 2014 and 2013. Round your answers to 1 decimal place.) Return on Equity 2014 2013 4-b. Is the trend going in the right direction? Yes ONO 5-a. Net property and equipment totaled $122.000 at the end of 2012. Compute the fixed asset turnover ratios for 2014 and 203. Round your answers to 2 decimal places.) Fixed Asset Turnover 2014 2013 5-b. Is the trend going in the right direction? ONO O Yos 6-a. Compute the debt to assets ratios for 2014 and 2013. (Round your answers to 2 decimal places) Debt-to- Assets 2014 2013 6b Is debt providing financing for a larger or smaller proportion of the company's asset growth? Larger proportion OSmaller proportion 7-a. Compute the times interest earned ratios for 2014 and 2013. (Round your answers to 1 decimal place.) 2014 2013 Times InterestEarned mes umes 7.6. Does the outcome of ratio in 2014 appears to be good or bad for the company? O Bad O Good 8-a. After Pinnacle Plus released its 2014 financial statements, the company's shares were trading at $40.40. After the release of its 2013 financial statements, the company's share price was $34.10 per share Compute the P/E ratios for both years. (Round your answers to 1 decimal place. Price Earnings 2014 2013 8 b. Does it appear that investors have become more or less) optimistic about Pinnacle's future success? O More optimistic Less optimistic