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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 $ 22,000 Accounts receivable,
The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc. Balance Sheet December 31 | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 22,000 | ||||
Accounts receivable, net | 200,000 | |||||
Merchandise inventory | 390,000 | |||||
Prepaid expenses | 7,000 | |||||
| | | ||||
Total current assets | 619,000 | |||||
Property and equipment, net | 910,000 | |||||
| | | ||||
Total assets | $ | 1,529,000 | ||||
| | | ||||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Current liabilities | $ | 260,000 | ||||
Bonds payable, 9% | 350,000 | |||||
| | | ||||
Total liabilities | 610,000 | |||||
Stockholders equity: | ||||||
Common stock, $5 par value | $ | 120,000 | ||||
Retained earnings | 799,000 | |||||
| | | ||||
Total stockholders equity | 919,000 | |||||
| | | ||||
Total liabilities and equity | $ | 1,529,000 | ||||
| | | ||||
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Castile Products, Inc. Income Statement For the Year Ended December 31 | |||
Sales | $ | 2,260,000 | |
Cost of goods sold | 1,190,000 | ||
| | | |
Gross margin | 1,070,000 | ||
Selling and administrative expenses | 610,000 | ||
| | | |
Net operating income | 460,000 | ||
Interest expense | 31,500 | ||
| | | |
Net income before taxes | 428,500 | ||
Income taxes (30%) | 128,550 | ||
| | | |
Net income | $ | 299,950 | |
| | | |
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Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory, $300,000. All sales were on account. |
Assume that Castile Products, Inc., paid dividends of $3.65 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. |
1. Dividend yield ratio
2. Price-earnings ratio
3. Book value per share
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