Amandas Audio reported the following amounts in its December 31, 2016, and 2015 financial statements.

($ millions)	2016	2015
Sales revenue	$370,000	$312,000
Cost of sales	162,000	168,000
Net income	21,200	16,800
Total assets	77,000	70,400
Stockholders equity	52,800	43,000

Required:

(1) Calculate to the nearest hundredth (i.e. two decimal points):

(a) Return on sales for 2016 (5%) (b) Return on assets for 2016 (5%)

(c) Debt-to-total-assets ratio of 12/31/16 (5%) (Hint: You need to figure out Total liabilities first.)

(2) Based on the ratios you calculated in (1) above, comment on the financial status of Amanda in 2016. (5%)

Your answer:

(1) a. Return on Sales

b. Return on Assets

c. Debt-to-total-asset Ratio

(2) Your assessment of the financial status: