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The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Income Statement Cost of Goods Sold Gross Profit $210,000$179.000

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The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Income Statement Cost of Goods Sold Gross Profit $210,000$179.000 88,000 Sales Revenue 92,000 perating Expenses Interest Expense 118,000 56,000 6,000 91,000 49,000 6,000 Income before Income Tax Expense Income Tax Expense (30%) 56,000 16,800 38,000 10,800 Net Income 39,20025,200 Balance Sheet Cash Accounts Receivable, Net inventory Property and Equipment. Net $ 95,80018,000 32,000 58.000 125,000 37,000 45,000 115,000 Total Assets $292.600 $233.000 Accounts Payable Income Tax Payable Note Payable (long-term) 5 82,000 1.500 80,000 33,000 1.500 60.000 Total Liabilities Common Stock (par $10) Retained Earnings 123.500 102,000 67.100 94,500 102.000 36.500 Total Liabilities and Stockholders' Equity $292,600$233.000 T During the current year, cash dividends amounting to $8.800 were deciared and paid Required: 1-3. Compute the gross proft percentage in the current and preious years (Round your answers to T decimal place.) ross Percentage Current Year Previous Year 1-b. Are the current year results better, or worse, than those for the previous year? O Better O Worse 2a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.) Current Year Previous Year 2-b. Are the current year results better, or worse, than those for the previous year? O Better O Worse 3-a. Compute the earnings per share for the current and previous years. (Round your answers to 2 decimal places.) Earnings per Share Current Year Previous Year 3-b. Are the current year results better, or worse. than those for the previous year? Better O Worse 4-a. Stockholders' equity totaled $120.000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your answers to 1 decimal place.) eturn on Equity 4-b. Are the current year results better, or worse, than those for the previous year? O Better O Worse 5-a. Net property and equipment totaled $130,000 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.) Turnover Current Year Previous Year 5-b. Are the current year results better, or worse, than those for the previous year? O Better O Worse 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) Debt-to-Assets Current Year Previous Year 6-b. Is debt providing fnancing for a larger or smaller proportion of the company's asses growth? Larger Proportion O Smaller Proportion 7.a. comeute the tims interst earned ratios for the current ans prewious years Round to 1 decimal place.) 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 the current and previous years. (Round your answers to 1 decimal place.) Earned Current Year Previous Year 7-b. Are the current year results better, or worse, than those for the previous year? O Better 0 Worse 8-a. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $38. After the release of its previous year's financial statements, the company's stock price was $35 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.) Price/Earnings Ratio Current Year Previous Year 8-b. Does it appear that investors have become more (or less) opt mistic about Pinnacle's future success? More Optimistic Less Optimistio

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