Exercise 16-9 (Algo) Financial Ratios for Assessing Profitability and Managing Debt [LO16-4, LO16-5] The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets ook rint rences Current assets: 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% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Castile Products, Incorporated Income Statement For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) $ 21,000 240,000 330,000 7,000 598,000 870,000 $ 1,468,000 $ 230,000 340,000 570,000 $ 190,000 708,000 898,000 $ 1,468,000 $ 2,190,000 1,220,000 970,000 620,000 350,000 34,000 316,000 94,800-