1.) The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash	$	23,000
Accounts receivable, net		190,000
Merchandise inventory		320,000
Prepaid expenses		11,000
Total current assets		544,000
Property and equipment, net		870,000
Total assets	$	1,414,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	250,000
Bonds payable, 11%		340,000
Total liabilities		590,000
Stockholders equity:
Common stock, $10 par value	$	120,000
Retained earnings		704,000
Total stockholders equity		824,000
Total liabilities and stockholders equity	$	1,414,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	2,160,000
Cost of goods sold		1,170,000
Gross margin		990,000
Selling and administrative expenses		630,000
Net operating income		360,000
Interest expense		37,400
Net income before taxes		322,600
Income taxes (30%)		96,780
Net income	$	225,820

Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $350,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $2.35 per share during the year. Also assume that the companys common stock had a market price of $55 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Required:

Compute financial ratios as follows:

1. Earnings per share. (Round your answer to 2 decimal places.)

2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to 2 decimal places.)

3. Dividend yield ratio. (Round your percentage answer to 2 decimal places.)

4. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

5. Book value per share. (Round your answer to 2 decimal places.)

2.)

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash	$	22,000
Accounts receivable, net		230,000
Merchandise inventory		340,000
Prepaid expenses		11,000
Total current assets		603,000
Property and equipment, net		910,000
Total assets	$	1,513,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	250,000
Bonds payable, 12%		380,000
Total liabilities		630,000
Stockholders equity:
Common stock, $10 par value	$	110,000
Retained earnings		773,000
Total stockholders equity		883,000
Total liabilities and stockholders equity	$	1,513,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	3,450,000
Cost of goods sold		1,140,000
Gross margin		2,310,000
Selling and administrative expenses		570,000
Net operating income		1,740,000
Interest expense		45,600
Net income before taxes		1,694,400
Income taxes (30%)		508,320
Net income	$	1,186,080

Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $260,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1. Working capital.

2. Current ratio. (Round your answer to 1 decimal place.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

4. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

5. Times interest earned ratio. (Round your answer to 2 decimal places.)

6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)

7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)

8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.)