The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Current Year Previous Year Income Statement Sales Revenue $ 215,000 $ 183,000 Cost of Goods Sold 94,000 90,000 Gross Profit 121,000 93,000 Operating Expenses 57,000 49,800 Interest Expense 6,100 6,100 Income before Income Tax Expense 57,900 37,100 Income Tax Expense (30%) 17,370 11,130 Net Income $ 40,530 $ 25,970 Balance Sheet Cash $ 96,905 $ 17,000 Accounts Receivable, Net 38,000 33,000 Inventory 46,000 59,000 Property and Equipment, Net 116,000 126,000 Total Assets $ 296,905 $ 235,000 Accounts Payable $ 63,000 $ 32,900 Income Tax Payable 1,525 1,550 Note Payable (long-term) 61,000 61,000 Total Liabilities 125,525 95,450 Common Stock (par $10) 102,600 102,600 Retained Earnings 68,780 36,950 Total Liabilities and Stockholders Equity $ 296,905 $ 235,000 During the current year, cash dividends amounting to $8,700 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 $121,000 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 $131,000 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 $39. After the release of its previous year's financial statements, the company's stock price was $36 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