The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Sales Revenue* Income Statement Cost of Goods Sold $121,000 $110,000 56,400 52,400 Gross Profit 64,600 57,600 S Operating Expenses 39,300 36,300 Interest Expense 3,900 3,900 00:29:23 Income before Income Tax Expense 21,400 17,400 Income Tax Expense (30%) 6,420 5,220 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 Contributed Capital (8,950 shares) Retained Earningst Total Liabilities and Shareholders' Equity $14,980 $ 12,180 $ 48,428 $ 13,030 36,000 37,500 30,500 37,000 93,000 103,000 $207,928 $190,530 $ 42,558 $ 34,140 990 39,000 490 39,000 82,548 73,630 89,500 89,500 35,880 27,400 $207,928 $190,530 One-half of all sales are on credit. During 2017, cash dividends amounting to $6,500 were declared and paid. Required: 1-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) 2017 Net Profit Margin % Required: 1-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit 2017 00:29:11 2016 Margin % % 1-b. Is the trend going in the right direction? Yes O No 2-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) 2017 2016 Earnings per Share 59 2-b. Does the trend look good or bad? Good O Bad 3-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) 2017 2016 Debt-to- Assets 3-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? O Larger proportion O Smaller proportion 4-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest 2017 2016 Earned times times 17 2017 2016 Times Interest Earned times times 4-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? O Bad O Good 5-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $31.80. After the release of its 2016 financial statements, the company's share price was $26.30 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 2017 2016 Price/ Earnings 5-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? O Less optimistic O More optimistic