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 $112,000 $101,000 52,800 48,800 Gross Profit Operating Expenses Interest Expense 59,200 36,600 4,200 52,200 33,600 4,200 Income before Income Tax Expense Income Tax Expense (30%) 18,400 5,520 14,400 4,320 Net Income $ 12,880 $ 10,080 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 54,687 $ 17,500 39,000 33,000 26,000 40,000 99,000 109,000 Total Assets $218,687 $199,500 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 50,887 $ 38,280 1,020 520 42,000 42,000 Total Liabilities Contributed Capital (9,100 shares) Retained Earningst 93,907 91, 000 33,780 80,800 91,000 27,700 Total Liabilities and Shareholders' Equity $218,687 $199,500 * One-half of all sales are on credit TDuring 2017, cash dividends amounting to $6,800 were declared and paid. 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? Bad Good 8a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $35.30. After the release of its 2016 financial statements, the company's share price was $29.50 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price! 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