Sandhill Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Sandhill Medical Comparative Balance Sheet As of December 31 2016 2015 Asset Current assets $417,400 776,500 681,000 247,100 2,122,000 8,378,060 $11,013,800 $10,500,060 $386,000 1,067,400 736,000 391,000 2,580,400 8,433,400 as Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders Equity Current liabilities Long-term debt $3,153,000 3,702,700 6,855,700 51,400 133,000 3,973,700 4,158,100 $11,013,800 $2,846,050 3,892,600 6,738,650 51,400 103,850 3,606,160 3,761,410 $10,500,060 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sandhill 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 $10,010,000 $9,613,900 5,298,800 4,315,100 2,634,150 1,680,950 308,650 1,372,300 411,690 $960,610 5,703,000 4,307,000 2,840,300 1,466,700 321,000 1,145,700 343,710 $801,990 Preferred dividends Common dividends Total dividends paid Net income retained 29,450 405,000 434,450 367,540 29,450 439,000 468,450 492,160 Sandhill 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 $10,010,000 $9,613,900 5,298,800 4,315,100 2,634,150 1,680,950 308,650 1,372,300 411,690 $960,610 5,703,000 4,307,000 2,840,300 1,466,700 321,000 1,145,700 343,710 $801,990 Preferred dividends 29,450 439,000 468,450 492,160 3,114,000 $3,973,700 $3,606,160 29,450 405,000 434,450 367,540 3,606,160 Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year Calculate the following profitability ratios for 2016. (Round answers to 1 decimal place, eg, 50.1%.) a. Gross margin percentage b. Return on assets C. Return on common stockholders' equity Question Attempts: 0 of 3 used