ES Exercise D12-9 Oriole Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Oriole Medical Comparative Balance Sheet As of December 31 2015 Assets Current assets Cash Accounts receivable, net Inventory $399,000$417,500 776,500 800,000 681,100 1,048,000 000247,000 2,565,000 2,122,100 8,759,860 8,440,000 $11,324,860 $10,562,100 Other current assets Total current assets Property, plant,& equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,126,000 $2,846,000 3,780,000 3,892,650 6,906,000 6,738,650 59,000 159,000103,850 4,190,860 3,660,600 4,418,860 3,823,450 Total liabilities and stockholders equity $11,324,860$10,562,100 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 69,000 Total stockholders' equity Oriole 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 10,177,250 $9,614,000 ,611,750 5,298,750 4.565,500 4,315,250 2,840,3002,634,100 1 1,681,150 308,650 1,418,800 1,372,500 425,640411,750 1,725,200 306,400 $923,160 $960 750 29,450 433,450 Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 29,500 413,000 462,900442,S00 518,250 3,660,600 3,142,350 $4,190,860 $3,660,600 530,260 Calculate the following leverage ratios for 2016. (Round all answers to 2 decimal places, eg. 2.55% or 2.55.) a. Debt ratio b. Debt-to-equity ratio c. Times interest earned ratio times