Managerial accounting 8th edition 14-8 parts1-8

Chapter 14 The ce Castile Products, Inc Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income nterest expense Net income before taxes income taxes (30%) . Net income $420,000 292.500 127,500 EXER Norsk On tha 38,000 8,000 30,000 9.000 21,000 Account balances at the beginning of the year were: accounts receivable, $25,000 and imventory $60,000. All sales were on account Compate 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. 3. Th b. 6. Average collection period 7. Average sale period 8. Operating cycle EXERCISE 14-9 Financial Ratios for Assessing Profitability and Managing Debt LO14-4, L014-5 Refer to the financial statements for Castile Products, Inc., in Exercise 14-8. Assets at the beginning of the year totaled $280,000, and the stockholders' equity sotaled $161,600 PROBLE 014-5 h the ri Compute the following I. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets 4. Return on equity 5. Was financial leverage positive or negative for the year? Explain EXERCISE 14-10 Financial Ratios for Assessing Market Performance LO 14-6 Refer to the financial statements for Castile Products, Inc, in Exercise 14-8. 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 company's common stock had a market price of $42 at the end of the year and there was no 4. Net change in the number of outstanding shares of common stock during the year Compute financial ratios as follows: I Earnings per share. 2. Dividend payout ratio. 3. Dividend yield ratio. 4 Price-carnings ratio. arkets agricultural products fox the burgeoning Asian cossuter llfent assets, current liabilities, and sales over the las five years (Year 5 is the pstrecet yers Seles Cash Accounts receivable, net .. Year 2 $18 00,000 $1980,000$2070,000 $2.100 000 $225 65,000 49.000 400030 Year 3 300,000 600,000 nventory total current assets Current liabilities 405,000 510,000 $70.000 690,000 720,000 50000 660,000 5 950,000 $1,070,000 $1,143,000 $127009 $1.3 $ 400,000 $440,000 520000 580000 640 000 Required Espress all of the asset, liability, and sales data in trend icm.) Use Year 1 as the base year and carry computations to one decimal pl : Comment on the results of your analysis. BERCISE 14-8 Selected Financial Ratios LO14-2, LO14-3, LO14-4 The financial statements for Castile Products, Inc., are given below: percentages (Show ace percentages for each Castile Products, Inc. Balance Sheet December 31 Assets Current asts 6,500 35.000 70,000 3.500 115,000 185.000 Cash Accounts receivable, net Merchandlse inventory Total current assets Property and equipment, net Total assets $300,000 Liabilities and Stockholders' Equity Liabilities: $50000 80,000 Current liabilities . .. Bonds payable, 10% 130,000 . Total liabilities Stockholders' equity Common stock, $5 per value Retained earnings 30,000 140.000 170,000 $300,000 Total stockholders' equity Total iabilities and stockholders' equity