Sunland Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Sunland Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets $347,000 1,066,600 731,000 339,000 2,483,600 9,032,310 $11,515,910 $417,400 776,400 681,100 247,100 2,122,000 8,379,350 $10,501,350 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $3,149,000 3,702,700 6,851,700 53,500 112,000 4,498,710 4,664,210 $11,515,910 $2,846,100 3,892,700 6,738,800 53,500 103,800 3,605,250 3,762,550 $10,501,350 Sunland Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,350,000 $9,614,000 Cost of goods sold 5,164,000 5,298,700 Gross profit 5,186,000 4,315,300 Operating expenses 2,840,200 2,634,200 Net operating income 2,345,800 1,681,100 Interest expense 393,000 308,600 Net income before taxes 1,952,800 1,372,500 Income taxes (30%) 585,840 411,750 Net income $1,366,960 $960,750 Dividends paid Preferred dividends 29,500 29,500 Common dividends 444,000 458,000 Total dividends paid 473,500 487,500 Net income retained 893,460 473,250 Retained earnings, beginning of year 3,605,250 3,132,000 Retained earnings, end of year $4,498,710 $3,605,250 Calculate the following profitability ratios for 2016. (Round answers to 1 decimal place, e.g. 50.1%.) T 50.112 a. Gross margin percentage 12.42 b. Return on assets 32.44% c. Return on common stockholders' equity