Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The financial statements for Castile Products, Inc. are given below: Castile Products, Inc. Balance Sheet December 31 Assets $ Current assets: Cash Accounts recelvable.net Merchandise

image text in transcribed

image text in transcribed

The financial statements for Castile Products, Inc. are given below: Castile Products, Inc. Balance Sheet December 31 Assets $ Current assets: Cash Accounts recelvable.net Merchandise inventory Prepaid expenses 22,000 170.000 360.000 9.000 Total current assets Property and equipment, net 561,000 900.000 Total assets $1.461.000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% $ 260.000 390,000 650,000 Total liabilities Stockholders' equity Common stock $10 par value Retained earnings $ 180,000 631,000 811,000 Total stockholders' equity Total liabilities and equity $1,461,000 Castile Products Inc Income Statement For the Year Ended December 31 Sales $2,250,000 Cost of goods sold 1,200,000 Gross margin Selling and administrative expenses 1.050.000 580,000 Net operating income Interest expense 470,000 42.900 Net income before taxes Income taxes (30%) 427,100 128,130 Net income $ 298,970 Account balances at the beginning of the year were: accounts receivable, $180,000, and inventory $300,000 All sales were on account Assume that Castile Products Inc. paid dividends of $2.85 per share during the year. Also assume that the company's common stock had a market price of $65 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 (ie., 0.1234 should be considered as 12.3%).) Dividend payout ratio 3. Dividend yield ratio (Round your percentage answer to 1 decimal place (ie., 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 por share (Round your answer to 2 decimal places.) Book value per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, William B. Tayler

16th Edition

0357715225, 9780357715222

More Books

Students also viewed these Accounting questions

Question

Will the company help with relocation expenses?

Answered: 1 week ago

Question

Identify traditional external recruitment methods.

Answered: 1 week ago

Question

Describe alternatives to recruitment.

Answered: 1 week ago