Question 4 Sheridan Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Sheridan Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $368,000 1,068,000 731,000 370,000 2,537,000 10,128,005 $12,665,005 $417,500 776,450 681,000 247,050 2,122,000 8,360,780 $10,482,780 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities $2,846,100 3,892,700 Long-term debt Total liabilities 6,738,800 Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity $3,181,000 3,702,600 6,883,600 52,900 139,000 5,589,505 5,781,405 $12,665,005 52,900 103,850 3,587,230 3,743,980 $10,482,780 Total liabilities and stockholders' equity Sheridan Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,890,000 $9,613,900 Cost of goods sold 4,231,000 5,298,800 Gross profit 6,659,000 4,315,100 Operating expenses 2,840,250 2,634,100 Net operating income 3,818,750 1,681,000 Interest expense 322,000 308,600 Net income before taxes 3,496,750 1,372,400 Income taxes (30%) 1,049,025 411,720 Net income $2,447,725 $960,680 Dividends paid Preferred dividends Common dividends Total dividends paid 29,450 416,000 445,450 2,002,275 3,587,230 $5,589,505 29,450 486,000 515,450 445,230 3,142,000 $3,587,230 Net income retained Retained earnings, beginning of year Retained earnings, end of year (a) Calculate the earnings per share (average of 373,000 shares outstanding for the year) for 2016. (Round answer to 2 decimal places, e.g. 2.55.) Earning per share $ per share Click if you would like to Show Work for this question: Open Show Work