The comparative nancial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2015 Income Statement Sales Revenue* $130,000 $119,030 Cost of Goods Sold 50,000 55,030 Gross Profit 70,000 53,030 Operating Expenses 42,000 39,030 Interest Expense 3,000 3,030 Income before Income Tax Expense 25,000 21,030 Income Tax Expense (30%) 7,500 5,330 Net Income $ 17,500 $ 14,730 Balance Sheet Cash $ 50,147 $ 17,730 Accounts Receivable, Net 27,000 42,030 Inventory 35,000 28,030 Property and equipment, Net 75,000 85,030 Total Assets $187,147 $172,730 Accounts Payable $ 24,847 $ 22,830 Income Tax Payable 900 430 Note Payable, Long-Term 30,000 30,030 Total Liabilities 55,747 53,230 Contributed Capital (9,300 shares) 93,000 93,030 Retained EarningsT 38,400 25,530 Total Liabilities and Shareholders' Equity $187,147 $172,730 4c One-half of all sales are on credit. TDuring 2017, cash dividends amounting to $5,500 were declared and paid. Required: 1-a. Compute the gross prot percentage in 201T and 2016- {Round your answers to 1 decimal place.) 1-b. Is the trend going in the night direction? 0 Yes 0 No 2-a. Compute the net prot margin for 201? and 2016. {Round your answers to 1 decimal place: -[Alt + A] 2-b. Is the trend going in the right direction? 0 No 0 Yes 3-a. Compute the earnings per Share for 2017 and 2016. (Round your answers to 2 decimal places.} 3-b. Does the trend look good or bad? 0 Good 0 Bad 4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017' and 2016. {Round your answers to 1 decimal place.) 4-b. Is the trend going in the right direction? 0 Yes 0 No 5-a. Net property and equipment totalled $90,000 at the end of 2015. Compute the xed asset turnover ratios for 201? and 2016. [Round your answers to 2 decimal places.) 2w _ 5-b. Is the trend going in the right direction? 0 Yes 0 No 6-a. Compute the debttoassets ratios for 2017 and 2016. [Round your answers to 2 decimal places} 2w _ 6-b. ls debt providing nancing for a larger or smaller proportion of the company's asset growth? 0 Smaller proportion 0 Larger proportion 7-a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned 2017 times 2016 time 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? O Bad O Good 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $19.50. After the release of its 2016 financial statements, the company's share price was $17.00 per share. Compute the P/E ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price/ Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? O Less optimistic More optimistic