Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Sheridan Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Accounts receivable, net Inventory Other current assets $338,000 1,065,000 741,000 $417,500 776,450 681,000 247,00 Total current assets 2,121,950 8,362,830 $11,804,520 $10,484,780 2,501,000 9,303,520 Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,127,000 $2,846,100 3,892,600 6,738,700 57,000 103,900 4,761,870 3,585,180 3,746,080 Total liabilities and stockholders' equity $11,804,520 $10,484,780 Total liabilities Preferred stock, $5 par value Common stock, 0.25 par value Retained earnings 3,702,650 6,829,650 57,000 156,000 Total stockholders' equity 4,974,870 Sheridan Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30% Net income Dividends paid $10,700,000 $9,614,000 5,298,750 4,315,250 2,634,150 1,681,100 308,700 1,372,400 411,720 $960,680 5,160,000 5,540,000 2,840,300 2,699,700 388,000 2,311,700 693,510 $1,618,190 29,500 412,000 441,500 1,176,690 3,585,180 Preferred dividends 29,500 463,000 492,500 468,180 3,117,000 $4,761,870 $3,585,180 Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year Calculate the following profitability ratios for 2016' (Round answers to 1 decimal place, eg. 50.1%.) a. Gross margin percentage b. Return on assets c. Return on common stockholders' equity