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

CullumberMedical

Comparative Balance Sheet

As of December 31

2020

2019

AssetsCurrent assetsCash$400,000$417,500Accounts receivable, net1,056,000776,400Inventory721,000681,050Other current assets381,300247,050Total current assets2,558,3002,122,000Property, plant, & equipment, net8,710,2358,439,930Total assets$11,268,535$10,561,930Liabilities and Stockholders' EquityCurrent liabilities$3,208,000$2,846,000Long-term debt3,702,7003,892,650Total liabilities6,910,7006,738,650Preferred stock, $5 par value59,00058,900Common stock, $0.25 par value104,700103,900Retained earnings4,194,1353,660,480Total stockholders' equity4,357,8353,823,280Total liabilities and stockholders' equity$11,268,535$10,561,930

CullumberMedical

Comparative Income Statement and Statement of Retained Earnings

For the Year

2020

2019

Sales revenue (all on account)$10,177,300$9,613,900Cost of goods sold5,613,0005,298,700Gross profit4,564,3004,315,200Operating expenses2,840,2502,634,200Net operating income1,724,0501,681,000Interest expense300,400308,600Net income before taxes1,423,6501,372,400Income taxes (30%)427,095411,720Net income$996,555$960,680Dividends paidPreferred dividends29,55029,500Common dividends433,350413,100Total dividends paid462,900442,600Net income retained533,655518,080Retained earnings, beginning of year3,660,4803,142,400Retained earnings, end of year$4,194,135$3,660,480

(a)

Calculate the earnings per share (average of418,000shares outstanding for the year) for 2020.(Round answer to 2 decimal places, e.g. 2.55.)

Earning per share$

enter the earning per share in dollars rounded to 2 decimal places

per share

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(b)

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

Price/earnings ratioenter the price to earnings ratio rounded to 1 decimal place

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(c)

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

Dividend payout ratioenter the dividend payout ratio in percentages rounded to 1 decimal place

%