Exercise 13-9 Financial Ratios for Assessing Profitability and Managing Debt [LO13-4, LO13-51 The financial statements for Castile Products, Inc., are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 190,000 300,000 7,000 519,000 890,000 Total current assets Property and equipment, net Total assets $1,409,000 Liabilities and Stockholders' Equity Liabilities: S 280,000 Current liabilities Bonds payable, 11% 320,000 600,000 S 190,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 619,000 809,000 $1.409,000 Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,230,000 1,180,000 Gross margin Selling and administrative expenses 1,050,000 640,000 Net operating income Interest expense 410,000 35,200 374,800 112,440 Net income before taxes Income taxes (30%) S 262,360 Net income