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Pinnacle Plus declared and paid a cash dividend of $6.600 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $118,28 52.ee 58.ee 36.000 599.ee 48.eee 51, eee 33, eee 4.000 14, eee 4.200 59,800 18.ee 5.ee $ 12,6ee Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Incone Tax Expense Income Tax Expense (38) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-tern) Total Liabilities Common Stock (par sie) Retained Earnings Total liabilities and Stockholders' Equity $ 69,50 17.00 25.eee 95.000 $206,5 $2.ee 1, eee 4.ee 83,888 se, eee 33,500 $206, 580 $ 38,00 12.ee 38.000 195.000 $193, eee $ 35.000 500 4.de 75, see 98,860 27.See 5193, eee Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse than those for the previous year? 4. Stockholders' equity totaled $100,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. Are the current year results better, or worse than those for the previous year? 5. Net property and equipment totaled $110,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current year results better or worse than those for the previous year? 6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 7. Compute the times interest earned ratios for the current and previous years. Are the current year results better, or worse than those for the previous year? 8. After Pinnacle Plus released its current year's financial statements, the company's stock was trading at $18. After the release of its previous year's financial statements, the company's stock price was $15 per share. Compute the P/E ratios for both years. Does it appear that investors have become more or less) optimistic about Pinnacle's future success? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 1-0. 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? 1-3 Gross Prom Percentage Requires 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 1-a Gross Profit Percentage Current Year Previous Year % % 1-b. Current year gross profit percentage? OBetter Worse

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