The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data:

	2017			2016
Income Statement
Sales Revenue*	$	118,000		$	107,000
Cost of Goods Sold		55,200			51,200
Gross Profit		62,800			55,800
Operating Expenses		38,400			35,400
Interest Expense		4,800			4,800
Income before Income Tax Expense		19,600			15,600
Income Tax Expense (30%)		5,880			4,680
Net Income	$	13,720		$	10,920
Balance Sheet
Cash	$	62,865		$	14,980
Accounts Receivable, Net		45,000			36,000
Inventory		29,000			46,000
Property and equipment, Net		111,000			121,000
Total Assets	$	247,865		$	217,980
Accounts Payable	$	70,165		$	47,100
Income Tax Payable		1,080			580
Note Payable, Long-Term		48,000			48,000
Total Liabilities		119,245			95,680
Contributed Capital (9,400 shares)		94,000			94,000
Retained Earnings		34,620			28,300
Total Liabilities and Shareholders' Equity	$	247,865		$	217,980

^*One-half of all sales are on credit. During 2017, cash dividends amounting to $7,400 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) 2017 _____ %

2016_____%

1-b. Is the trend going in the right direction? Choose one

• Yes
• No

2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) 2017____

2016____

2-b. Is the trend going in the right direction? Choose one

• No
• Yes

3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) 2017_____

2016_____

3-b. Does the trend look good or bad? Choose one

• Good
• Bad

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.) 2017_____%

2016_____%

4-b. Is the trend going in the right direction?Choose one

• Yes
• No

5-a. Net property and equipment totalled $126,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) 2017_____

206_____

5-b. Is the trend going in the right direction? Choose one

• No
• Yes

6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) 2017_____

2016_____

6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Choose one

• Larger proportion
• Smaller proportion

7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) 2017_____times

2016_____times

7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? Choose one

• Good
• Bad

8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $43.00. After the release of its 2016 financial statements, the company's share price was $36.50 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 2017_____

2016_____

8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? Choose one

• Less optimistic
• More optimistic