****Calculate the price/earnings ratio (market price of $48 at year-end) for 2020. (Round answer to 1 decimal place, e.g. 2.5.)

Price/earnings ratio

enter the price to earnings ratio rounded to 1 decimal place

*****Calculate the dividend payout ratio (dividends of $1.25 per common share for the year) for 2020. (Round answer to 1 decimal place, e.g. 2.5.)

Dividend payout ratio

enter the dividend payout ratio in percentages rounded to 1 decimal place %

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Sandhill Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Sandhill Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $380,000 $417,500 Accounts receivable, net 1,023,000 776,400 Inventory 681,050 742,000 381,300 247,050 Other current assets Total current assets Property, plant, & equipment, net Total assets 2,526,300 2,122,000 8,703,820 8,439,965 $11,230,120 $10,561,965 Liabilities and Stockholders' Equity Current liabilities $3,169,000 $2,846,000 Long-term debt 3,702,700 3,892,600 6,871,700 6,738,600 Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value 58,950 58,950 104,600 103,900 4,194,870 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,660,515 3,823,365 4,358,420 $11,230,120 $10,561,965 Sandhill Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,300 $9,614,000 Cost of goods sold 5,612,000 5,298,700 Gross profit 4,565,300 4,315,300 Operating expenses Net operating income 2,840,300 1.725,000 2,634,200 1,681,100 300,350 308,650 1,424,650 1,372,450 427,395 411,735 $997,255 $960,715 Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained 29,450 29,500 433,450 413,050 462.900 442,550 534,355 518,165