c). Through comparing the current year’s account balance and ratios with those of the preceding year, we summerize Pinnacle business in serveral areas. The gross profit margin which measures the profitability of Pinnacle business indicates that Pinnacle is performing very stable and fairly well. In identifying areas of business risk, we focus on accounts receivable turnover, inventory turnover, and debts to equity. Account receivable turnover has declined significantly, it is a reasonable tool to assess that more sales were credit sales. Increased credit sales are likely to be assessed as high...