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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 $ 22,000 250,000 310,000 6,000 Total current assets Property and equipment, net 588,000 850,000 Total assets $1,438,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 9% $ 250,000 350,000 600,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings $ 120,000 718,000 Total stockholders' equity 838,000 Total liabilities and equity $1,438,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,270,000 Cost of goods sold 1,210,000 1,060,000 650,000 Gross margin Selling and administrative expenses Net operating income Interest expense 410,000 31,500 Net income before taxes Income taxes (30%) 378,500 113,550 Net income $ 264,950 Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $280,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $2.15 per share during the year. Also assume that the company's common stock had a market price of $68 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.) Earnings per share 2. 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%).) Dividend payout ratio % 3. Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) Dividend yield ratio % 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Price-earnings ratio 5. Book value per share. (Round your answer to 2 decimal places.) Book value per share
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