Exercise D12-10 Carla Vista Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Carla Vista Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $300,000 $417,500 200776,400 681,000 1,065,200 726,000 34,000 247,000 Total current assets 2,465,200 2,121,900 8,852,440 8,430,430 $11,317,640 $10,552,330 Property, plant,&equipment, net Total assets Liabilities and Stockholders Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 3,118,000 $2,846,100 3,702,600 3,892,650 6,820,600 6,738,750 58,600 103,850 4,298,440 3,651,130 4,497,040 3,813,580 58,600 140,000 Total stockholders' equity Total liabilities and stockholders' equity $11,317,640 $10,552,330 Carla Vista Medical Statement and Statement of Retained Earnings mparative Income Carla Vista 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 $10,420,000 $9,613,950 5,637,000 5,298,750 4.783,000 4,315,200 2,840,200 2,634,100 1,942,800 1,681,100 308,700 1,372,400 393,000 1,549,8001,372,400 411,720 464,940 $1,084,860 $960,680 Preferred dividends Common dividends Total dividends paid 29,550 416,000 445,550 515,130 3,651,130 3,136,000 $4,298,440 $3,651,130 29,550 408,000 437,550 647,310 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