The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Current Year Previous Year Income Statement Sales Revenue $ 230,000 $ 195,000 Cost of Goods Sold 100,000 96,000 Gross Profit 130,000 99,000 Operating Expenses 60,000 52,200 Interest Expense 6,400 6,400 Income before Income Tax Expense 63,600 40,400 Income Tax Expense (30%) 19,080 12,120 Net Income $ 44,520 $ 28,280 Balance Sheet Cash $ 100,820 $ 14,000 Accounts Receivable, Net 41,000 36,000 Inventory 49,000 62,000 Property and Equipment, Net 119,000 129,000 Total Assets $ 309,820 $ 241,000 Accounts Payable $ 66,000 $ 32,600 Income Tax Payable 1,600 1,700 Note Payable (long-term) 64,000 64,000 Total Liabilities 131,600 98,300 Common Stock (par $10) 104,400 104,400 Retained Earnings 73,820 38,300 Total Liabilities and Stockholders Equity $ 309,820 $ 241,000 During the current year, cash dividends amounting to $9,000 were declared and paid. 5-a. Net property and equipment totaled $134,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.) 5-b. Are the current year results better, or worse, than those for the previous year? Better Worse 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Larger Proportion Smaller Proportion 7-a. Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place.) 7-b. Are the current year results better, or worse, than those for the previous year? Better Worse 8-a. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $42. After the release of its previous year's financial statements, the company's stock price was $39 per share. Compute the P/E ratios for both years. (Round your 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? More Optimistic Less Optimistic