E13-4 Computing Profitability Ratios (LO4, LO5) Assume the average cost of computer equipment fell 170 percent between 2016 and 2017. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017. Sales Revenues Cost of Goods Sold 2017 $98,500 60,500 2016 $116,544 69,926 38,000 34,100 536 46,618 34,100 424 Gross Profit Selling, General, and Administrative Expensen Interest Expense Income Before Income Tax Expense Income Tax Expense 3,364 2,096 12,094 4,068 Net Income $ 1,268 $ 8,026 Required: 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) 2017 2016 Gross profit % 1-b. Not available in Connect. 2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.) McGraw-Hill Connect Conne ed ASSIGNMENT Saved 1-b. Not available in Connect 2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.) 2017 2016 Net profit % 2-b. Not available in Connect 3-a. Computer Tycoon reported average net fixed assets of $57,200 in 2017 and $57,100 in 2016. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.) 2017 2016 times Fixed asset turnover ratio times 3-b. Not available in Connect 4-a. Computer Tycoon reported average shareholders' equity of $57,000 in 2017 and 543,800 in 2016. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.) 2017 2016 Return on equity (ROE) % 2-b. Not available in Connect. 3-a. Computer Tycoon reported average net fixed assets of $57,200 in 2017 and $57100 in 2016. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.) 2017 2016 Fixed asset turnover ratio times times 3-b. Not available in Connect 4-a. Computer Tycoon reported average shareholders' equity of $57,000 in 2017 and $43,800 in 2016. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.) 2017 2016 Return on equity (ROE) 4-b. Did the company generate greater returns for shareholders in 2017 than in 2016? Yes NO