Davis, Managerial Accounting, 3e Help System Announcements CALCULATOR PRINT Question 3 Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow 2015 Cullumber Medical Comparative Balance Sheet As of December 31 2016 Assets Current assets Cash $339,000 Accounts receivable, net 1,068,000 Inventory 738,000 Other current assets 366,000 Total current assets 2,511,000 Property, plant, & equipment, net 9,381,730 Total assets $11,892,730 $417,500 776,500 681,000 247,100 2,122,100 8,381,620 $10,503,720 Uabilities and Stockholders' Equity Current abies Long-term dett Preferred stock, 5 par value Common stock, 30.25 par value Retained ning Total stockholders' equity Total e s and stockholders' equity 53,146,000 3,702,650 6,848,650 56,000 189,000 4,799,000 5,044,00 11.892,730 $2,846,050 3,892,600 6,738,650 56.000 103,600 3,605,270 3,765,070 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,840,000 $9,614,000 Cost of goods sold 5,266,000 5,298,700 Gross profit 5,574,000 4,315,300 Operating expenses 2,840,200 2,634,100 Net operating income 2,733,800 1,681,200 Interest expense 359,000 308,600 Net Income before taxes 2,374,800 1,372,600 Income taxes (30%) 712,440 411,780 Net income $1,662,360 $960,820 Dividends paid Preferred dividends 29,550 29,550 Common dividends 439,000 488,000 Total dividends paid 468,550 517,550 Net income retained 1,193,810 443,270 Retained earnings, beginning of year 3,605,270 3,162,000 Retained earnings, end of year $4,799,000 $3,605,270 Calculate the following profitability ratios for 2016. (Round answers to 1 decimal place, e.g. 50.1%.) a. Gross margin percentage b. Return on assets c. Return on common stockholders' equity Davis, Managerial Accounting, 3e Help System Announcements CALCULATOR PRINT Question 3 Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow 2015 Cullumber Medical Comparative Balance Sheet As of December 31 2016 Assets Current assets Cash $339,000 Accounts receivable, net 1,068,000 Inventory 738,000 Other current assets 366,000 Total current assets 2,511,000 Property, plant, & equipment, net 9,381,730 Total assets $11,892,730 $417,500 776,500 681,000 247,100 2,122,100 8,381,620 $10,503,720 Uabilities and Stockholders' Equity Current abies Long-term dett Preferred stock, 5 par value Common stock, 30.25 par value Retained ning Total stockholders' equity Total e s and stockholders' equity 53,146,000 3,702,650 6,848,650 56,000 189,000 4,799,000 5,044,00 11.892,730 $2,846,050 3,892,600 6,738,650 56.000 103,600 3,605,270 3,765,070 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,840,000 $9,614,000 Cost of goods sold 5,266,000 5,298,700 Gross profit 5,574,000 4,315,300 Operating expenses 2,840,200 2,634,100 Net operating income 2,733,800 1,681,200 Interest expense 359,000 308,600 Net Income before taxes 2,374,800 1,372,600 Income taxes (30%) 712,440 411,780 Net income $1,662,360 $960,820 Dividends paid Preferred dividends 29,550 29,550 Common dividends 439,000 488,000 Total dividends paid 468,550 517,550 Net income retained 1,193,810 443,270 Retained earnings, beginning of year 3,605,270 3,162,000 Retained earnings, end of year $4,799,000 $3,605,270 Calculate the following profitability ratios for 2016. (Round answers to 1 decimal place, e.g. 50.1%.) a. Gross margin percentage b. Return on assets c. Return on common stockholders' equity