Question
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts rec.
The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc.
Balance Sheet December 31 Assets
Current assets: Cash $ 21,000
Accounts rec. Net 230,000
Merchandise inv 300,000
Prepaid expenses 7,000
Total current assets 558,000
Property and equip. 880,000
Total assets 1,438,000
Liabilities and Stockholders' Equity Liabilities:
Current liabilities $ 210,000
Bonds payable, 10% 350,000
Total liabilities 560,000
Stockholders equity: Common stock, $10 par val 140,000
Retained earnings 738,000
Total stockholders equ. 878,000
Total liabilities and equ. 1,438,000
Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 2,210,000
Cost of goods sold 1,200,000
Gross margin 1,010,000
Selling and adm. exp. 600,000
Net operating income 410,000
Interest expense 35,000
Net income before taxes 375,000
Income taxes (30%) 112,500
Net income $ 262,500
Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $330,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $2.65 per share during the year. Also assume that the companys common stock had a market price of $63 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 final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
3. Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)
5. Book value per share. (Round your answer to 2 decimal places.)
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