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Matthias 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

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Matthias 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 5,611,600 5,298,700 Gross profit 4,565,600 4,315,200 Operating expenses 2,840,200 2,634,100 Net operating income 1,725,400 1,681,100 Interest expense 300,300 308,600 Net income before taxes 1,425,100 1,372,500 Income taxes (30%) 427,530 411,750 Net income $997,570 $960,750 Dividends paid Preferred dividends 29,450 29,450 Common dividends 433,350 413,000 Total dividends paid 462,800 442,450 Net income retained 534,770 518,300 Retained earnings, beginning of year 3,660,600 3,142,300 Retained earnings, end of year $4,195,370 $3,660,600 Calculate the following leverage ratios for 2016. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) a. Debt ratio 61.11 61.17 % b. Debt-to-equity ratio 1.58 c. Times interest earned ratio 6.75 times

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