P14-8B. Ratios Compared with Industry Averages You are analyzing the performance of Lumite Corpora L04 tion, a manufacturer of personal care products, for the most recent year. The following data are taken from the firm's latest annual report Dec. 31, 2016 Dec. 31, 2015 $350,000 820,000 3,700,000 $4,870,000 Inventory and prepaid expenses .. . . .. . . . . . .. . . . .. . . .. . . . 950,000 $500,000 1,300,000 900,000 1,800,000 370,000 $4,870,000 10% Bonds payable 796 Preferred stock 1,300,000 900,000 800,000 . . . .. _. . . ........$5,500,000 Total Liabilities and Stockholders' Equity In 2016, net sales amount to $8,800,000, net income is $680,000, and preferred stock dividends paid are $65,000. Required a. Calculate the following for 2016: 1. Return on sales 2. Return on assets 3. Return on common stockholders' equity 4. Quick ratio 5. Current ratio 6. Debt-to-equity ratio Trade association statistics and information provided by credit agencies reveal the following data on industry norms: b. Median Upper Quartile Return on sales . . . . . . . . . . . . . . . 3.7 percent 10.6 percent Return on common stockholders' equity.. .. . . . . . . . . . . . . 18.5 percent 34.2 percent 1.8 3.7 0.37 Compare Lumite Corporation's performance with industry performance