The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Current Year Previous Year Income Statement Sales Revenue $ 155,000 $ 135,000 Cost of Goods Sold 70,000 66,000 Gross Profit 85,000 69,000 Operating Expenses 45,000 40,200 Interest Expense 4,900 4,900 Income before Income Tax Expense 35,100 23,900 Income Tax Expense (30%) 10,530 7,170 Net Income $ 24,570 $ 16,730 Balance Sheet Cash $ 81,245 $ 29,000 Accounts Receivable, Net 26,000 21,000 Inventory 34,000 47,000 Property and Equipment, Net 104,000 114,000 Total Assets $ 245,245 $ 211,000 Accounts Payable $ 51,000 $ 34,100 Income Tax Payable 1,225 950 Note Payable (long-term) 49,000 49,000 Total Liabilities 101,225 84,050 Common Stock (par $10) 95,400 95,400 Retained Earnings 48,620 31,550 Total Liabilities and Stockholders Equity $ 245,245 $ 211,000 During the current year, cash dividends amounting to $7,500 were declared and paid. Required: 1-a. Compute the gross profit percentage in the current and previous years. (Round your answers to 1 decimal place.) 1-b. Are the current year results better, or worse, than those for the previous year? Better Worse 2-a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.) 2-b. Are the current year results better, or worse, than those for the previous year? Better Worse 3-a. Compute the earnings per share for the current and previous years. (Round your answers to 2 decimal places.) 3-b. Are the current year results better, or worse, than those for the previous year? Better Worse 4-a. Stockholders' equity totaled $109,000 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.) 4-b. Are the current year results better, or worse, than those for the previous year? Better Worse 5-a. Net property and equipment totaled $119,000 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 $27. After the release of its previous year's financial statements, the company's stock price was $24 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