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

	Current Year			Previous Year
Income Statement
Sales Revenue	$	185,000		$	159,000
Cost of Goods Sold		82,000			78,000
Gross Profit		103,000			81,000
Operating Expenses		51,000			45,000
Interest Expense		5,500			5,500
Income before Income Tax Expense		46,500			30,500
Income Tax Expense (30%)		13,950			9,150
Net Income	$	32,550		$	21,350
Balance Sheet
Cash	$	89,075		$	23,000
Accounts Receivable, Net		32,000			27,000
Inventory		40,000			53,000
Property and Equipment, Net		110,000			120,000
Total Assets	$	271,075		$	223,000
Accounts Payable	$	57,000		$	33,500
Income Tax Payable		1,375			1,250
Note Payable (long-term)		55,000			55,000
Total Liabilities		113,375			89,750
Common Stock (par $10)		99,000			99,000
Retained Earnings		58,700			34,250
Total Liabilities and Stockholders Equity	$	271,075		$	223,000

During the current year, cash dividends amounting to $8,100 were declared and paid.

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Compute the gross profit percentage in the current and previous years. (Round your percentage 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 percentage 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 $115,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your percentage 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 $125,000 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 $33. After the release of its previous year's financial statements, the company's stock price was $30 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