Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $300,000. All sales were on account.

Assume that Castile Products, Inc., Paid dividends of $2.85 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:

Castile Products, Inc. Balance Sheet Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 190,000 370,000 7,000 Total current assets Property and equipment, net 589,000 910,000 Total assets $1,499,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 10% S 270,000 350,000 620,000 $ 180,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 699,000 879,000 $1,499,000 Total stockholders' equity Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold S2,280,000 1,230,000 Gross margin Selling and administrative expenses 1,050,000 650,000 Net operating income Interest expense 400,000 35,000 Net income before taxes Income taxes (30%) Net income 365,000 109,500 S 255,500