Exercise 13-10 Financial Ratios for Assessing Market Performance [LO13-6]

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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash				$	18,000
Accounts receivable, net					190,000
Merchandise inventory					310,000
Prepaid expenses					8,000
Total current assets					526,000
Property and equipment, net					890,000
Total assets				$	1,416,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	240,000
Bonds payable, 10%					330,000
Total liabilities					570,000
Stockholders equity:
Common stock, $5 par value				$	130,000
Retained earnings					716,000
Total stockholders equity					846,000
Total liabilities and equity				$	1,416,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	2,290,000
Cost of goods sold		1,240,000
Gross margin		1,050,000
Selling and administrative expenses		630,000
Net operating income		420,000
Interest expense		33,000
Net income before taxes		387,000
Income taxes (30%)		116,100
Net income	$	270,900

Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $260,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $4.05 per share during the year. Also assume that the companys common stock had a market price of $63 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:

4.	Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

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