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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 Accounts receivable, net Merchandise
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,000 170,000 360,000 8,000 557,000 860,000 $1,417,000 $ 240,000 360,000 600,000 140,000 677,000 817,000 $1,417,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,180,000 Cost of goods sold 1,170,000 Gross margin 1,010,000 Selling and administrative expenses 610,000 Net operating income 400,000 Interest expense 32,400 Net income before taxes 367,600 Income taxes (30%) 110,280 Net income $ 257,320 Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $330,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $2.25 per share during the year. Also assume that the company's common stock had a market price of $61 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 2. Dividend payout ratio 3. Dividend yield ratio 4. Price-earnings ratio 5. Book value per share %
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