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 $124,000 $113,000 57,600 53,600 Gross Profit Operating Expenses Interest Expense 66,400 40,200 3,600 59,400 37,200 3,600 Income before Income Tax Expense Income Tax Expense (30%) 22,600 6,780 18,600 5,580 Net Income $ 15,820 $ 13,020 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 47,461 33,000 32,000 87,000 $ 13,740 39,000 34,000 97,000 Total Assets $199,461 $183,740 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 35,781 $30, 180 960 460 36,000 36,000 Total Liabilities Contributed Capital (9,000 shares) Retained Earnings 72,741 90,000 36,720 66,640 90,000 27, 105 Total Liabilities and Shareholders' Equity $199,461 $183, 740 One-half of all sales are on credit. touring 2017, cash dividends amounting to $6,200 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 Yes O No 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit Margin % 2017 2016 % k ces 2-b. Is the trend going in the right direction? 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? Good O 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.) es Return on Equity % 2017 2016 % 4-b. Is the trend going in the right direction? O Yes 5-a. Net property and equipment totalled $102,000 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 es 5-b. Is the trend going in the right direction? O Yes 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 Larger proportion O Smaller 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-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.) Pricel Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? O More optimistic O Less optimistic