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The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts receivable,
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts receivable, net 250,000 Merchandise inventory 380,000 Prepaid expenses 11,000 Total current assets 662,000 Property and equipment, net 870,000 Total assets $1,532,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 260,000 Bonds payable, 8% 380,000 Total liabilities 640,000 Stockholders' equity: Common stock, $10 per value $ 140,000 Retained earnings 752,000 Total stockholders' equity 892,000 Total liabilities and stockholders' equity $1,532,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 2,140,000 Cost of goods sold 1,210,000 Gross margin 930,000 Selling and administrative expenses 610,000 Net operating income 320,000 Interest expense 30,400 Net income before taxes 289,600 Income taxes (30%) 86,880 Net income $ 202, 720 Account balances at the beginning of the year were: accounts receivable, $160,000; and inventory, $260,000. All sales were on account Assume that Castile Products, Inc., paid dividends of $2.35 per share during the year. Also assume that the company's common stock had a market price of $57 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. (i.e., 0.1234 should be entered as 12.34).) 3. Dividend yield ratio. (Round your percentage answer to 2 decimal places. (i.e., 0.1234 should be entered as 12.34).) 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.) % 1. Earnings per share Dividend payout 2. ratio 3. Dividend yield ratio 4. Price-earnings ratio Book value per 5. share %
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