Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net $ 19,000 Merchandise inventory 220,000 Prepaid expenses 310,000 Total current assets

image text in transcribed
image text in transcribed
Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net $ 19,000 Merchandise inventory 220,000 Prepaid expenses 310,000 Total current assets 8,000 557,000 Property and equipment, net 820,000 Total assets $ 1,377,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 280,000 Bonds payable, 98 330,000 Total liabilities 610,000 Stockholders' equity: Common stock, $10 per value 150,000 Retained earnings 617,000 Total stockholders' equity 767,000 Total liabilities and stockholders' equity $ 1,377,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 2, 110,000 Cost of goods sold 1,220,000 Gross margin 890,000 Selling and administrative expenses 570,000 Net operating income 320,000 29, 700 Interest expense 290, 300 Net income before taxes 87,090 Income taxes (30%) $ 203,210 Net income Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $350,000. All sales were on account Net operating income Interest expense Net income before taxes Income taxes (309) Net income 320,000 29,700 290, 300 87,090 $ 203,210 Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $350,000. All sales were on account Assume that Castile Products, Incorporated paid dividends of $3.15 per share dering the year. Also assume that the company's common stock had a market price of $72 at the end of the year and there was to 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.) 1. Earnings per share 2 Dividend payout ratio 3. Dividend yield ratio 3. Price-earnings ratio 4. Book value per share % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions

Question

=+Could you create an interactive game on the website?

Answered: 1 week ago