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

	Current Year			Previous Year
Income Statement
Sales Revenue	$	175,000		$	151,000
Cost of Goods Sold		78,000			74,000
Gross Profit		97,000			77,000
Operating Expenses		49,000			43,400
Interest Expense		5,300			5,300
Income before Income Tax Expense		42,700			28,300
Income Tax Expense (30%)		12,810			8,490
Net Income	$	29,890		$	19,810
Balance Sheet
Cash	$	86,465		$	25,000
Accounts Receivable, Net		30,000			25,000
Inventory		38,000			51,000
Property and Equipment, Net		108,000			118,000
Total Assets	$	262,465		$	219,000
Accounts Payable	$	55,000		$	33,700
Income Tax Payable		1,325			1,150
Note Payable (long-term)		53,000			53,000
Total Liabilities		109,325			87,850
Common Stock (par $10)		97,800			97,800
Retained Earnings		55,340			33,350
Total Liabilities and Stockholders Equity	$	262,465		$	219,000

During the current year, cash dividends amounting to $7,900 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 $113,000 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 $123,000 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