Columbia Associates declared and paid a cash dividend of $$7,500$ in the current year. Its comparative financial statements, prepared at December $31,$ reported the following summarized information:

Current Year Previous Year

Income Statement

Sales Revenue $ $155,000$ $ $135,000$

Cost of Goods Sold $70,00066,000$

Gross Profit $85,00069,000$

Operating Expenses $45,00040,200$

Interest Expense $4,9004,900$

Income before Income Tax Expense $35,10023,900$

Income Tax Expense $(30\%)10,5307,170$

Net Income $ $24,570$ $ $16,730$

Balance Sheet

Cash $ $81,245$ $ $29,000$

Accounts Receivable, Net $26,00021,000$

Inventory $34,00047,000$

Property and Equipment, Net $104,000114,000$

Total Assets $ $245,245$ $ $211,000$

Accounts Payable $ $51,000$ $ $34,100$

Income Tax Payable $1,225950$

Notes Payable $($long$-$term$)49,00049,000$

Total Liabilities $101,22584,050$

Common Stock $($par $$10)95,40095,400$

Retained Earnings $48,62031,550$

Total Liabilities and Stockholders$$ Equity $ $245,245$ $ $211,000$

Required:

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?

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?

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?

Stockholders$$ equity totaled $$109,000$ 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?

Net property and equipment totaled $$119,000$ 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?

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?

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?

After Columbia Associates released its current year$$s financial statements, the company$$s stock was trading at $$27.$ After the release of its previous year$$s financial statements, the company$$s stock price was $$24$ per share. Compute the P$/$E ratios for both years. Does it appear that investors have become more $($or less$)$ optimistic about Columbia$$s future success?