Use the data given in PA13- 1 for Pinnacle Plus.

Required:
1. Compute the gross profit percentage in the current and previous years. Round the percentages to one decimal place. 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. Round the percentages to one decimal place. 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. Express the ROE as percentages rounded to one decimal place. 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. Round the ratios to two decimal places. 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. Round the ratios to two decimal places. 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. Round the ratios to one decimal place. 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, rounded to one decimal place. Does it appear that investors have become more (or less) optimistic about Pinnacle€™s future success?

ncrease (uecrease) in Current (versus Previous) Current revous Amount Percentage Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $110,000 99,000 48,000 51,000 52 000 58,000 36,000 4,000 18,000 5.400 4000 14000 4.200 12600 9.800 6,500 38 000 17.000 38,000 12000 25,000 95,000 105,000 $206.500$193.000 Accounts Payable Income Tax Payable Note Payable (ong-term) Total Liabilities Common Stock (par $10 Retained Earmings Total Liabilities and Stockholders Equity 1,000 40,000 83.000 90,000 33.500 $20,500 42000 35,000 500 40,000 75,500 0.000 27.500 $193,000