The comparative financial statements prepared at December 31, 2017 for Pinnacle Plus showed the following summarized data: 2817 2016 Income Statement Sales Revenue" Cost of Goods Sold $115,000 $184,900 54,000 50,000 Gross Profit Operating Expenses Interest Expense 61,000 37,500 4,500 54,000 34,500 4,588 Income before Income Tax Expense Income Tax Expense (30%) 19,000 5,700 15,000 4,500 5 13,300 $ 10,500 Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 58,330 42.000 27,500 105,000 16,150 34,500 43,000 115,000 $232,830 $208,650 Total Assets Accounts Payable Income Tax Payable Note Payable, Long-Term $ 60,880 S 42,600 1, ose 550 45,800 45,000 106.130 88.150 Total Liabilities Total Liabilities Contributed Capital (9,250 shares) Retained Earningst Total Liabilities and Shareholders' Equity 106,139 92,500 34,209 88,150 92,500 28,000 $232,830 $288,650 One-half of all sales are on credit Touring 2017, cash dividends amounting to $7,100 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 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 Good O Bad 4-0. 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 Check my work 4-b. Is the trend going in the right direction? Yes O No 5-a. Net property and equipment totalled $120,000 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 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? O Bad O Good 8-0. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $3970. After the release of its 2016 financial statements, the company's share price was $32.90 per share Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price! Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? O Less optimistic O More optimistic