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 $121,000 $110,000 56,400 52,400 Gross Profit Operating Expenses Interest Expense 64,600 39,300 3,900 57,600 36,300 3,900 Income before Income Tax Expense Income Tax Expense (308) 21,400 6,420 17,400 5,220 Net Income $ 14,980 $ 12,180 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net Total Assets $ 48,428 $ 13,030 36,000 37,500 30,500 37,000 93,000 103,000 $207,928 $190,530 $ 42,558 $ 34,140 990 490 39,000 39,000 Accounts Payable Income Tax Payable Note Payable, Long-Term Total Liabilities Contributed Capital (8,950 shares) Retained Earningst 82,548 89,500 35,880 73,630 89,500 27,400 Total Liabilities and Shareholders' Equity $207,928 $190,530 *One-half of all sales are on credit. touring 2017, cash dividends amounting to $6,500 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 Yes 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 No Yes 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? Bad 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 % 4-b. Is the trend going in the right direction? No Yes 5-a. Net property and equipment totalled $108,000 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? 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? Larger proportion Smaller proportion 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) 2017 2016 Times Interest Earned times times 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? Good O Bad 8-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.) Pricel Earnings 2017 2016 8-b. Does it appear that investors have become more or less) optimistic about Pinnacle's future success? Less optimistic O More optimistic