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The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue Cost of
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue Cost of Goods Sold $113,000 $102,000 53,200 49,200 59,800 36,900 4,300 52,800 33,900 4,300 Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 18,600 5,580 14,600 4,380 Net Income $ 13,020 $ 10,220 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 55,805 $ 17,030 40,000 33,500 26,500 41,000 101,000 111,000 Total Assets $223,305 $ 202,530 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 53,855 $ 39,700 1,030 530 43,000 43,000 Total Liabilities Contributed Capital (9,150 shares) Retained Earningst 97,885 91,500 33,920 83,230 91,500 27,800 Total Liabilities and Shareholders' Equity $223,305 $ 202,530 One-half of all sales are on credit. touring 2017, cash dividends amounting to $6,900 were declared and paid. 5-a. Net property and equipment totalled $116,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Fixed Asset Turnover 2017 2016 5-b. Is the trend going in the right direction? O No O Yes 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Debt-to Assets 2017 2016 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? O Larger proportion O Smaller proportion
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