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Eugenie Shipping declared and paid a cash dividend of $$6,725$ in the current year. Its comparative financial statements, prepared at December $31,$ reported the following summarized information:

Current Previous

Income Statement

Sales Revenue $ $282,000$ $ $233,000$

Cost of Goods Sold $151,650135,000$

Gross Profit $130,35098,000$

Operating Expenses $51,60043,330$

Interest Expense $5,2004,470$

Income before Income Tax Expense $73,55050,200$

Income Tax Expense $(30\%)22,06515,060$

Net Income $ $51,485$ $ $35,140$

Balance Sheet

Cash $ $56,260$ $ $41,600$

Accounts Receivable, Net $25,70022,000$

Inventory $37,00034,000$

Property and Equipment, Net $139,000128,600$

Total Assets $ $257,960$ $ $226,200$

Accounts Payable $ $33,000$ $ $31,000$

Income Tax Payable $3,9003,400$

Notes Payable $($long$-$term$)88,700104,200$

Total Liabilities $125,600138,600$

Common Stock $($par $$1)32,20032,200$

Retained Earnings $100,16055,400$

Total Liabilities and Stockholders$$ Equity $ $257,960$ $ $226,200$

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$$ equity totaled $$77,000$ at the beginning of the previous year. Compute the return on equity 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 $$127,000$ 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 Eugenie released its current$-$year financial statements, the company$$s stock was trading at $$22.$ After the release of its previous$-$year financial statements, the company$$s stock price was $$14$ per share. Compute the P$/$E ratios for both years. Does it appear that investors have become more $($or less$)$ optimistic about Eugenie$$s future success?

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