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 $123,000 $112,000 57,200 53,200 Gross Profit Operating Expenses Interest Expense 65,800 39,900 3,700 58,800 36,900 3,700 Income before Income Tax Expense Income Tax Expense (30%) 22,200 6,660 18, 200 5, 460 Net Income $ 15,540 $ 12, 740 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 47,249 34,000 31,500 89,000 $ 13,150 38,500 35,000 99,000 Total Assets $201,749 $185,650 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 37,839 $ 31,480 970 470 37,000 37,000 Total Liabilities Contributed Capital (8,950 shares) Retained Earningst 75,809 89,500 36,440 68,950 89,500 27,200 Total Liabilities and Shareholders' Equity $ 201,749 $185,650 One-half of all sales are on credit. touring 2017, cash dividends amounting to $6,300 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) Gross Profit Percentage % 2017 2016 % 1-b. Is the trend going in the right direction? O No O Yes Innewers tn 1 decimal place.) 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit Margin 2017 % 2016 % 2-b. Is the trend going in the right direction? O Yes O No 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 2016 3-b. Does the trend look good or bad? O Bad O Good 4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Return on Equity 2017 % 2016 ulo 4-b. Is the trend going in the right direction? Yes O No (101on at the end of 2015 Compute the fivell accet tunnver rating for 2017 and 2016 5-a. Net property and equipment totalled $104,000 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? 0 Yes O No 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 Smaller proportion O Larger proportion 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned 2017 times 2016 times 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? Bad O Good Prev 5 of 5 Next 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $29.20. After the release of its 2016 financial statements, the company's share price was $23.90 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Pricel Earnings 2017 2016 8-b. Does it appear that Investors have become more (or less) optimistic about Pinnacle's future success? Less optimistic More optimistic