Use the data given in PB13-1 for Tiger Audio.
Refer to PB13-1,
The comparative financial statements prepared at December 31, 2014, for Tiger Audio showed the following summarized data:

Required
1. Compute the gross profit percentage in 2014 and 2013. Is the trend going in the right direction?
2. Compute the net profit margin for 2014 and 2013. Is the trend going in the right direction?
3. Compute the earnings per share for 2014 and 2013. Does the trend look good or bad? Explain. 4. Shareholders' equity totalled $65,000 at the end of 2012. Compute the return on equity ratios for 2014 and 2013. Is the trend going in the right direction?
5. Net property and equipment totalled $115,000 at the end of 2012. Compute the fixed asset turnover ratios for 2014 and 2013. Is the trend going in the right direction?
6. Compute the debt-to-assets ratios for 2014 and 2013. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Explain.
7. Compute the times interest earned ratios for 2014 and 2013. Do they look good or bad? Explain.
8. After Tiger released its 2014 financial statements, the company's shares were trading at $17. After the release of its 2013 financial statements, the company's share price was $12 per share. Compute the P/E ratios for both years. Does it appear that investors have become more or less optimistic about Tiger's future success?

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Increase (Decrease) 2014 over 2013 2014 2013 Amount Percentage Income Statement $185,000 Sales Revenue $222,000 Cost of Goods Sold 127,650 000ווו 74,000 Gross Profit 94,350 33,730 Operating Expenses Interest Expense 39,600 3,270 37,000 11,100 4,000 Income before Income Tax Expense Income Tax Expense (30%) 50,750 15,225 $ 35,525 $ 25,900 Net Income Balance Sheet $ 38,000 $ 40,000 Cash 18,500 16,000 22,000 119,000 Accounts Receivable, Net Inventory 25,000 127,000 $210,500 Property and Equipment, Net $195,000 Total Assets $ 25,000 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 27,000 3,000 75,500 2,800 92,200 Total Liabilities 105,500 120,000 Contributed Capital Retained Earnings 25,000 25,000 50,000 80,000 Total Liabilities and Shareholders' Equity $210,500 $195,000