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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 $ 6,500 35,000 70,000 3,500 115,000 185,000 $300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities... $ 50,000 Bonds payable, 10% 80,000 Total liabilities 130,000 Stockholders' equity: Common stock, $5 per value 30,000 Retained earnings 140.000 Total stockholders' equity 170,000 Total liabilities and stockholders' equity $300,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales ..... $420,000 Cost of goods sold 292,500 Gross margin 127,500 Selling and administrative expenses 89.500 Net operating income 38,000 Interest expense.... 8,000 Net income before taxes 30,000 Income taxes (30%) 9,000 Net Income $ 21,000 Account balances at the beginning of the year were: Accounts Receivable - $25,000 Inventory - $60,000 All sales were on account. 6,000 shares of common stock were outstanding all year. Compute the following financial data and ratios: 1. Working capital 2. Current ratio 3. Average collection period 4. Average sales period 5. Gross margin percentage 6. Earnings per share
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