Use the data given in PA13 1 for Pinnacle Plus Required 1

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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?View Solution:
Use the data given in PA13 1 for Pinnacle Plus Required 1

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