EXERCISE 158 Selected Financial Ratios [LO152, LO153, LO154] The financial statements for Castile Products, Inc., are given below: d Page 702 d Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. 3. Acid-test ratio. 4. Debt-to-equity ratio. 5. Times interest earned ratio. 6. Average collection period. 7. Average sale period. 8. Operating cycle. EXERCISE 159 Financial Ratios for Assessing Profitability and Managing Debt [LO154, LO155] Refer to the financial statements for Castile Products, Inc., in Exercise 158. Assets at the beginning of the year totaled $280,000, and the stockholders equity totaled $161,600. Required: Compute the following: 9. Gross margin percentage. 10. Net profit margin percentage. 11. Return on total assets. 12. Return on equity. 13. Was financial leverage positive or negative for the year? Explain. EXERCISE 1510 Financial Ratios for Assessing Market Performance [LO156] Refer to the financial statements for Castile Products, Inc., in Exercise 158. In addition to the data in these statements, assume that Castile Products, Inc., paid dividends of $2.10 per share during the year. Also assume that the companys common stock had a market price of $42 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: 14. Earnings per share. 15. Dividend payout ratio. 16. Dividend yield ratio. 17. Price-earnings ratio. 18. Book value per share.