Exercise 15-10 Financial Ratios for Assessing Market Performance [LO15 The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: $ 6,588 35,000 70,000 3,500 115,008 185,00e $300,00e Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% $ se, e0e 80,000 13e,00e Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 30,000 140,000 170,000 Total stockholders' equity Total liabilities and stockholders' equity $3ee,e0e Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses89,500 Net operating income Interest expense Net income before taxes Income taxes (38%) Net income $420,00e 292, 50e 127, 500 38,000 8,000 30,800 9,000 $ 21,00e