Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Students, use this sheet to answer all questions. Review financial statements below: Castile Products, Inc. Balance Sheet December 31 Castile Products, Inc. Income Statement For
Students, use this sheet to answer all questions. Review financial statements below: Castile Products, Inc. Balance Sheet December 31 Castile Products, Inc. Income Statement For the Year Ended December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net. Total assets $ 6,500 35,000 70,000 3,500 115,000 185,000 $300,000 Sales Cost of goods sold Gross margin.. Selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes (30%) Net income $420,000 292.500 127.500 89,500 38.000 8,000 30,000 9.000 $ 21,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and equity $ 50,000 80,000 130.000 $ 30,000 140,000 170,000 $300,000 Compute the following: A. Working Capital Working Capital Current Assets - Current Liabilities B. Current Ratio Current Ratio - Current Assets/Current Liabilities C.Acid Test (Quick Ratio) Quick Ratio - (Cash Short Term Investments Accounts Receivable/Current Liabilities D. Debt-to-Equity Ratio Debt-to-Equity RatiowTotal Liabilities/Total Stockholder Equity E. Net Profit Margin Percentage Net Profit Margin Percentage-Net Income/Sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started