The comparative financial statements prepared at December 31 for Tiger Audio showed the following summarized data:

	Current			Previous
Income Statement
Sales Revenue	$	257,000		$	213,000
Cost of Goods Sold		141,650			125,000
Gross Profit		115,350			88,000
Operating Expenses		46,600			39,330
Interest Expense		4,700			3,970
Income before Income Tax Expense		64,050			44,700
Income Tax Expense (30%)		19,215			13,410
Net Income	$	44,835		$	31,290
Balance Sheet
Cash	$	49,485		$	40,100
Accounts Receivable, Net		22,700			19,500
Inventory		32,000			29,000
Property and Equipment, Net		134,000			124,600
Total Assets	$	238,185		$	213,200
Accounts Payable	$	30,500		$	28,500
Income Tax Payable		3,525			3,150
Note Payable (long-term)		83,200			99,200
Total Liabilities		117,225			130,850
Common Stock (par $1)		29,200			29,200
Retained Earnings*		91,760			53,150
Total Liabilities and Stockholders Equity	$	238,185		$	213,200

*During the current year, cash dividends of $6,225 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 $72,000 at the beginning of the previous year. Compute the return on equity 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 $122,000 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 companys 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 Tiger released its current year financial statements, the companys stock was trading at $26. After the release of its previous year financial statements, the companys stock price was $15 per share. Compute the P/E ratios for both years. (Round 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 Tigers future success?

	Less Optimisitic
	More Optimisitic