Exercise 15-10 Financial Ratios for Assessing Market Performance [LO15-6] The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 19,000 Accounts receivable, net 200,000 Merchandise inventory 380,000 Prepaid expenses 11,000 Total current assets 610,000 Property and equipment, net 830,000 Total assets $ 1,440,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 220,000 Bonds payable, 9% 380,000 Total liabilities 600,000 Stockholders equity: Common stock, $5 par value $ 170,000 Retained earnings 670,000 Total stockholders equity 840,000 Total liabilities and stockholders equity $ 1,440,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 2,300,000 Cost of goods sold 1,210,000 Gross margin 1,090,000 Selling and administrative expenses 590,000 Net operating income 500,000 Interest expense 34,200 Net income before taxes 465,800 Income taxes (30%) 139,740 Net income $ 326,060 Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $280,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $3.25 per share during the year. Also assume that the companys common stock had a market price of $70 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: 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.)