CraneMedical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow.

Crane Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $366,000 $417,400 Accounts receivable, net 1,080,000 776,450 Inventory 736,000 681,100 Other current assets 381,350 247,050 Total current assets 2,563,350 2,122,000 Property, plant, 8: equipment, net 8,666,440 8,440,015 Total assets $11,229,790 $10,562,015 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 $3,169,000 3,702,600 6,871,600 59,000 104,600 4,1946 90 4,353,190 $11,229,790 $2,846,000 3,892,700 6,738,700 59,000 103,800 3,660,515 3,823,315 $10,562,015 Crane Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue {all on account) $10,177,250 $9,613,950 Cost of goods sold 5,612,450 5,293,750 Gross prot 4,564,800 4,315,200 Operating expenses 2,840,200 2,634,100 Net operating income 1,724,600 1,681,100 Interest expense 300,350 308,650 Net income before taxes 1,424,250 1,372,450 Income taxes (30%} 427,275 411,735 Net income $996,975 $960,715 Dividends paid Preferred dividends 29,450 29,450 Common dividends 433,450 413,100 Total dividends paid 462,900 442,550 Net income retained 534,075 518,165 Retained earnings, beginning of year 3,660,515 3,142,350 Retained earnings, end of year $4.194,590 $3,660,515 (b) Calculate the price/earnings ratio (market price of $48 at year-end) for 2020. {Round answer to 1 decimal place. as. 2.5.] Price/earnings ratio (C) Calculate the dividend payout ratio {dividends of $1.25 per common share for the year) for 2020. [Round am to 1 decimal place cs. 2.5.] Dividend payout ratio 96 (a) Your answer is correct. Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earning per share $ 2.31 per share