Exercise 12-8 (Part Level Submission) Sandhill Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. 2015 Sandhill Medical Comparative Balance Sheet As of December 31 2016 Assets Current assets Cash $376,000 Accounts receivable, net 1,055,000 Inventory 731,000 Other current assets 381,400 Total current assets 2,543,400 Property, plant, & equipment, net 8,720,425 Total assets $11,263,825 $417,500 776,400 681,050 247,050 2,122,000 8,439,980 $10,561,980 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $3,203,000 3,702,700 6,905,700 58,900 104,600 4,194,625 4,358,125 $11,263,825 $2,846,100 3,892,700 6,738,800 58,900 103,800 3,660,480 3,823,180 $10,561,980 Sandhill Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,177,200 $9,613,900 Cost of goods sold 5,612,2005,298,750 Gross profit 4,565,000 4,315,150 Operating expenses 2,840,250 2,634,150 Net operating income 1,724,750 1,681,000 Interest expense 300,400 308,600 Net income before taxes 1,424,350 1,372,400 Income taxes (30%) 427,305 411,720 Net income $997,045 $960,680 Dividends paid Preferred dividends 29,500 29,550 Common dividends 433,400 413,050 Total dividends paid 462,900 442,600 Net income retained 534,145 518,080 Retained earnings, beginning of year 3,660,480 3,142,400 Retained earnings, end of year $4,194,625 $3,660,480 (a-d) Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g.-15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a. Working capital b. Current ratio C. Acid-test ratio d. Accounts receivable turnover times Click if you would like to Show Work for this question: Open Show Work