Question 2 Oriole Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Oriole Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $437,000 $417,400 776,500 681,000 247,100 2,587,000 2,122,000 8,656,875 8,439,930 $11,243,875 $10,561,930 1,047,000 730,000 373,000 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,132,000 $2,846,100 3,727,000 3,892,650 6,738,750 58,900 103,800 4,192,875 3,660,480 4,384,875 3,823,180 Total liabilities and stockholders' equity $11,243,875 $10,561,930 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 6,859,000 67,000 125,000 Total stockholders' equity Oriole Medical Comparative Income Statement and Statement of Retained Earnings For the Year 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 $10,177,200 $9,614,000 5,298,750 4,315,250 2,634,200 1,681,050 308,650 1,372,400 411,720 $960,680 5,613,600 4,563,600 2,840,250 1,723,350 301,500 1,421,850 426,555 $995,295 29,500 413,000 442,500 518,180 3,142,300 $4,192,875 $3,660,480 29,550 433,350 462,900 532,395 3,660,480 Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year Calculate the following leverage ratios for 2016, (Round all answers to 2 decimal places, eg. 2.55% or 2.55.) a. Debt ratio b. Debt-to-equity C. Times interest earned ratio ratio times