The Following Condensed Income Statement Is for Mason Inc Compute the Following Ratios for 2017,and Provide a Brief Explanation

The following condensed income statement is for Mason Inc.
$\begin{array}{c} \text { Mason Inc. }\\ \text { Income Statement}\\ \text { Years ended December 31, 2017 and 2016}\\ \text { (in thousands)}\\\begin{array}{lcc}&2017&2016\\ \text { Net sales ( } 80 \% \text { are credit sales) } & \$ 60,000 & \$ 46,000 \\ \text { Cost of goods sold } & 26,000 & 20,000 \\ \text { Gross margin } & 34,000 & 26,000 \\ \text { Selling and administrative expenses } & 6,000 & 4,000 \\ \text { Operating income } & 28,000 & 22,000 \\\text { Interest expense } & 1,000 & 1,000 \\\text { Income before taxes } & 27,000 & 21,000 \\ \text { Income tax expense } & 2,000 & 1,000 \\ \text { Net income } & \$ 25,000 &\$ 20,000 \\\end{array}\end{array}$

Compute the following ratios for 2017,and provide a brief explanation after each ratio (round percentage computations to one decimal place and earnings per share to two decimal places):
(1)Gross margin ratio
(2)Profit margin ratio
(3)Return on assets
(4)Return on common shareholders' equity
(5)Earnings per share (assume weighted average shares outstanding totaled 2,900,000 shares)
(6)Market capitalization (assume 3,000,000 shares were issued and outstanding at December 31,2017,and the market price was $9.00 per share)
(7)Price-earnings ratio