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

	2017			2016
Income Statement
Sales Revenue*	$	124,000		$	113,000
Cost of Goods Sold		57,600			53,600
Gross Profit		66,400			59,400
Operating Expenses		40,200			37,200
Interest Expense		3,600			3,600
Income before Income Tax Expense		22,600			18,600
Income Tax Expense (30%)		6,780			5,580
Net Income	$	15,820		$	13,020
Balance Sheet
Cash	$	47,461		$	13,740
Accounts Receivable, Net		33,000			39,000
Inventory		32,000			34,000
Property and equipment, Net		87,000			97,000
Total Assets	$	199,461		$	183,740
Accounts Payable	$	35,781		$	30,180
Income Tax Payable		960			460
Note Payable, Long-Term		36,000			36,000
Total Liabilities		72,741			66,640
Contributed Capital (9,000 shares)		90,000			90,000
Retained Earnings		36,720			27,100
Total Liabilities and Shareholders' Equity	$	199,461		$	183,740

^*One-half of all sales are on credit. During 2017, cash dividends amounting to $6,200 were declared and paid.

1-a. Compute the gross profit percentage in 2017 and 2016.

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

2-a. Compute the net profit margin for 2017 and 2016.

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

3-a. Compute the earnings per share for 2017 and 2016.

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

4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017 and 2016.

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

5-a. Net property and equipment totalled $102,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016.

6-a. Compute the debt-to-assets ratios for 2017 and 2016.

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

7-a. Compute the times interest earned ratios for 2017 and 2016.

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

8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $27.80. After the release of its 2016 financial statements, the company's share price was $22.70 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.)

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