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 $130,000 $119,000 60,000 56,000 Gross Profit Operating Expenses Interest Expense 70,000 42,000 3,000 63,000 39,000 3,000 Income before Income Tax Expense Income Tax Expense (30%) 25,000 7,500 21,000 6,300 Net Income $ 17,500 $ 14,700 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 50,147 $ 17,700 27,000 42,000 35,000 28,000 75,000 85,000 Total Assets $187,147 $172,700 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 24,847 $ 22,800 900 400 30,000 30,000 Total Liabilities Contributed Capital (9,300 shares) Retained Earningst 55,747 93,000 38,400 53,200 93,000 26,500 Total Liabilities and Shareholders' Equity $187,147 $172,700 Total Liabilities and Shareholders Equity $187, $172,700 One-half of all sales are on credit. touring 2017, cash dividends amounting to $5,600 were declared and paid. 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 % 5-a. Net property and equipment totalled $90,000 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? No Yes 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Debt-to- Assets 2017 2016 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned times 2017 2016 times 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $19.50. After the release of its 2016 financial statements, the company's share price was $17.00 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