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

	Current Year			Previous Year
Income Statement
Sales Revenue	$	150,000		$	131,000
Cost of Goods Sold		68,000			64,000
Gross Profit		82,000			67,000
Operating Expenses		44,000			39,400
Interest Expense		4,800			4,800
Income before Income Tax Expense		33,200			22,800
Income Tax Expense (30%)		9,960			6,840
Net Income	$	23,240		$	15,960
Balance Sheet
Cash	$	79,940		$	30,000
Accounts Receivable, Net		25,000			20,000
Inventory		33,000			46,000
Property and Equipment, Net		103,000			113,000
Total Assets	$	240,940		$	209,000
Accounts Payable	$	50,000		$	34,200
Income Tax Payable		1,200			900
Note Payable (long-term)		48,000			48,000
Total Liabilities		99,200			83,100
Common Stock (par $10)		94,800			94,800
Retained Earnings		46,940			31,100
Total Liabilities and Stockholders Equity	$	240,940		$	209,000

During the current year, cash dividends amounting to $7,400 were declared and paid. Required: 1-a. 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 $108,000 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 $118,000 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 $26. After the release of its previous year's financial statements, the company's stock price was $23 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