Use the information in E13-3 to complete the following requirements.
Refer to E13-3,
Assume the average cost of computer equipment fell 20.9 percent between 2012 and 2013. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2013.

Required
1. Compute the gross profit percentage for each year (rounded to one decimal place). Assuming that the change for 2012 to 2013 is the beginning of a sustained trend, is Computer Tycoon likely to earn more or less gross profit from each dollar of sales in 2014?
2. Compute the net profit margin for each year (expressed as a percentage with one decimal place). Given your calculations here and in requirement 1, explain whether Computer Tycoon did a better or worse job of controlling operating expenses in 2013 relative to 2012.
3. Computer Tycoon reported average net fixed assets of $54,200 in 2013 and $45,100 in 2012. Compute the fixed asset turnover ratios for both years (rounded to two decimal places). Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012?
4. Computer Tycoon reported average shareholders' equity of $54,000 in 2013 and $40,800 in 2012. Compute the return on equity ratios for both years (expressed as a percentage with one decimal place). Did the company generate greater returns for shareholders in 2013 than in 2012?

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2012 2013 $121,761 71,583 50,178 36,934 474 Sales Revenues Cost of Goods Sold Grass Profit Selling. General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense $98,913 59,249 39,664 36,943 565 2,156 1,024 12,770 5,540 2$ Net Income $ 1,132 7,230