Sign In Sign Up Ask an AI advisor
idontcare2003
idontcare2003
12.12.2019 • 
Business

The comparative financial statements prepared at december 31 for pinnacle plus showed the following summarized data: current year previous year income statement sales revenue $ 190,000 $ 163,000 cost of goods sold 84,000 80,000 gross profit 106,000 83,000 operating expenses 52,000 45,800 interest expense 5,600 5,600 income before income tax expense 48,400 31,600 income tax expense (30%) 14,520 9,480 net income $ 33,880 $ 22,120 balance sheet cash $ 90,380 $ 22,000 accounts receivable, net 33,000 28,000 inventory 41,000 54,000 property and equipment, net 111,000 121,000 total assets $ 275,380 $ 225,000 accounts payable $ 58,000 $ 33,400 income tax payable 1,400 1,300 note payable (long-term) 56,000 56,000 total liabilities 115,400 90,700 common stock (par $10) 99,600 99,600 retained earnings† 60,380 34,700 total liabilities and stockholders’ equity $ 275,380 $ 225,000 † during the current year, cash dividends amounting to $8,200 were declared and paid. required: 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? better worse 2-a. compute the net profit margin for the current and previous years. (round your answers to 1 decimal place.) 2-b. are the current year results better, or worse, than those for the previous year? better worse 3-a. compute the earnings per share for the current and previous years. (round your answers to 2 decimal places.) 3-b. are the current year results better, or worse, than those for the previous year? better worse 4-a. stockholders' equity totaled $116,000 at the beginning of the previous year. compute the return on equity (roe) ratios for the current and previous years. (round your answers to 1 decimal place.) 4-b. are the current year results better, or worse, than those for the previous year? better worse 5-a. net property and equipment totaled $126,000 at the beginning of the previous year. compute the fixed asset turnover ratios for the current and previous years. (round your answers to 2 decimal places.) 5-b. are the current year results better, or worse, than those for the previous year? better worse 6-a. compute the debt-to-assets ratios for the current and previous years. (round your answers to 2 decimal places.) 6-b. is debt providing financing for a larger or smaller proportion of the company's asset growth? larger proportion smaller proportion 7-a. compute the times interest earned ratios for the current and previous years. (round your answers to 1 decimal place.) 7-b. are the current year results better, or worse, than those for the previous year? better worse 8-a. after pinnacle plus released its current year's financial statements, the company's stock was trading at $34. after the release of its previous year's financial statements, the company's stock price was $31 per share. compute the p/e ratios for both years. (round your intermediate calculations to 2 decimal places and final answers to 1 decimal place.) 8-b. does it appear that investors have become more (or less) optimistic about pinnacle's future success? more optimistic less optimistic

Solved
Show answers

Ask an AI advisor a question

I want advice