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The financial statements for Castile Products, Incorporated, are given below:
Castile Products, Incorporated Balance Sheet December 31 | |||||
Assets | |||||
---|---|---|---|---|---|
Current assets: | |||||
Cash | $ 19,000 | ||||
Accounts receivable, net | 250,000 | ||||
Merchandise inventory | 350,000 | ||||
Prepaid expenses | 12,000 | ||||
Total current assets | 631,000 | ||||
Property and equipment, net | 830,000 | ||||
Total assets | $ 1,461,000 | ||||
Liabilities and Stockholders' Equity | |||||
Liabilities: | |||||
Current liabilities | $ 260,000 | ||||
Bonds payable, 11% | 310,000 | ||||
Total liabilities | 570,000 | ||||
Stockholders equity: | |||||
Common stock, $5 per value | $ 150,000 | ||||
Retained earnings | 741,000 | ||||
Total stockholders equity | 891,000 | ||||
Total liabilities and stockholders equity | $ 1,461,000 |
Castile Products, Incorporated Income Statement For the Year Ended December 31 | ||
Sales | $ 2,200,000 | |
---|---|---|
Cost of goods sold | 1,180,000 | |
Gross margin | 1,020,000 | |
Selling and administrative expenses | 630,000 | |
Net operating income | 390,000 | |
Interest expense | 34,100 | |
Net income before taxes | 355,900 | |
Income taxes (30%) | 106,770 | |
Net income | $ 249,130 |
Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $320,000. All sales were on account.
Assume that Castile Products, Incorporated paid dividends of $3.15 per share during the year. Also assume that the companys common stock had a market price of $72 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.)
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