The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Previous Current Year Year Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Pavable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity $235,000 $199,000 98,000 101,000 53,000 6,500 41,500 19,65012400 102,000 133,000 61,000 6,500 65,500 12,450 S 45,850 $ 29,050 $102,125 $ 13,000 37,000 63,000 130,000 $314,125 $243,000 42,000 50,000 120,000 S 67,000 32,500 1,750 65,000 99,250 105,000 38,750 $314,125 $243,000 1,625 65,000 133,625 105,000 75,500 During the current year, cash dividends amounting to $9,100 were declared and paid 1-a. Compute the gross profit percentage in the current and previous years. (Round your percentage answers to 1 decimal place.) Gross Profit Percentage Current Year Previous Year 1-b. Are the current year results better, or worse, than those for the previous year? Better O Worse 2-a. Compute the net profit margin for the current and previous years. (Round your percentage answers to 1 decimal place.) Net Profit Margin Current Year Previous Year 2-b. Are the current year results better, or worse, than those for the previous year? 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? O Better Worse 4-a. Stockholders' equity totaled $125,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. Return on Equ Current Year Previous Year 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 $135,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Fixed Asset Turnover Current Year Previous Year 5-b. Are the current year results better, or worse, than those for the previous year? 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. l s deat providing fns ncing for a largar or smalar propartion of the company'sasset growth? O Larger Proportion O Smallar Proportian 7. Comprethetimes marestearned rmios forme curremand previous years (Round your answers to 1 decimal place.) Cument Year Previous Year 7-b. Are tne currom year results better, or wo1%e, than those for the prevous year? O Better Warse et S d $43. After he release ofits pre nous year's financ 8-a. A er Pnndde Plus released s current eer's nencial sletemen s the compan calculations to 2 decimal places and final answers to 1 decimal place.) s s ock wasddin sta ements the company s stock pr ce wes S40 per share. Compute the PE ratos or both yeers. Round your intermed ate Current Yea Pravicus Year 8-D. Dors it appear thst investors heve become more lor lesa) aptimistc atou: P Pinnacle's future success? O Mara Optimistc O Less Optimistic 8
