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 $347,000 $417,500 776,400 681,050 247,000 2,121,950 10,254,305 8,403,645 $12,776,205 $10,525,595 Accounts receivable, net Inventory Other current assets 1,067,900 725,000 382,000 2,521,900 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt $3,194,000 ,846,100 3,702,7003,892,650 6,738,750 51,900 103,850 5,633,605 3,631,095 3,786,845 Total liabilities and stockholders' equity $12,776,205 $10,525,595 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 6,896,700 51,900 194,000 Total stockholders' equity 5,879,505 Sheridan Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 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 $10,910,000 $9,614,000 5,298,800 4,315,200 2,634,200 1,681,000 308,650 1,372,350 411,705 $960,645 4,250,000 6,660,000 2,840,200 3,819,800 314,000 3,505,800 1,051,740 $2,454,060 29,550 421,000 450,550 510,095 3,121,000 $5,633,605 $3,631,095 29,550 422,000 451,550 2,002,510 3,631,095 Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year (c) Your answer is incorrect. Try again. Calculate the dividend payout ratio (dividends of $1.04 per common share for the year) for 2016. (Round answer to 2 decimal places, e.g. 2.55%.) 33.29 Dividend payout ratio Click if you would like to Show Work for this question: Open Show Work