Question
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable,
The financial statements for Castile Products, Inc., are given below: |
Castile Products, Inc. Balance Sheet December 31 | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 23,000 | ||||
Accounts receivable, net | 230,000 | |||||
Merchandise inventory | 310,000 | |||||
Prepaid expenses | 10,000 | |||||
Total current assets | 573,000 | |||||
Property and equipment, net | 840,000 | |||||
Total assets | $ | 1,413,000 | ||||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Current liabilities | $ | 220,000 | ||||
Bonds payable, 10% | 370,000 | |||||
Total liabilities | 590,000 | |||||
Stockholders equity: | ||||||
Common stock, $10 par value | $ | 130,000 | ||||
Retained earnings | 693,000 | |||||
Total stockholders equity | 823,000 | |||||
Total liabilities and equity | $ | 1,413,000 | ||||
Castile Products, Inc. Income Statement For the Year Ended December 31 | |||
Sales | $ | 2,160,000 | |
Cost of goods sold | 1,240,000 | ||
Gross margin | 920,000 | ||
Selling and administrative expenses | 600,000 | ||
Net operating income | 320,000 | ||
Interest expense | 37,000 | ||
Net income before taxes | 283,000 | ||
Income taxes (30%) | 84,900 | ||
Net income | $ | 198,100 | |
Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $330,000. All sales were on account. |
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1. | Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) |
2. | Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) |
3. | Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) |
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