Question 2 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 $394,000 $417,400 Accounts receivable, net 1,072,000 776,500 Inventory 787,000 681,100 Other current assets 355,000 247,000 Total current assets 2,600,000 2,122,000 Property, plant, & equipment, net 8,640,310 8.440,010 Total assets $11,248,310 $10,562,010 $2,846,000 3,892,700 6,738,700 Liabilities and Stockholders' Equity Current buities Long-term debt Total liabiti Preferred stock, 55 par value Common stock, 50.25 par valve Retained earnings Total so lders' equity Totallaties and stockholders' equity $3,122,000 3,764,000 6,386,000 69,000 101,000 4,192,310 4.162 310 $11,248,310 58,950 103,900 3,660,460 3,823,310 $10,562,010 Carla Vista Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,177,250 $9,613,900 Cost of goods sold 5,612,000 5,298,800 Gross profit 4,565,250 4,315,100 Operating expenses 2,840,250 2,634,150 Net operating income 1,725,000 1,680,950 Interest expense 304,000 308,650 Net income before taxes 1,421,000 1,372,300 Income taxes (30%) 426,300 411,690 Net income $994,700 $960,610 Dividends paid Preferred dividends 29,450 29,450 Common dividends 433,400 413,050 Total dividends paid 462,850 442,500 Net income retained 531,850 518,110 Retained earnings, beginning of year 3,660,460 3,142,350 Retained earnings, end of year $4,192,310 $3,660,460 Calculate the following leverage ratios for 2016. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) a. Debt ratio b. Debt-to-equity ratio c. Times interest earned ratio times Click if you would like to Show Work for this question: Open Show Work