The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 19,000 Accounts receivable, net 240,000 Merchandise inventory 320,000 Prepaid expenses 8,000 Total current assets 587,000 Property and equipment, net 850,000 Total assets $1,437,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 10% 360,000 Total liabilities 600,000 Stockholders' equity: Common stock, $5 par value $ 190,000 Retained earnings 647,000 Total stockholders' equity 837,000 Total liabilities and equity $1,437,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,220,000 Cost of goods sold 1,200,000 Gross margin 1,020,000 Selling and administrative expenses 650,000 Net operating income 370,000 Interest expense 36,000 Net income before taxes Income taxes (30%) Net income 334,000 100,200 $ 233,800 Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $330,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $3.25 per share during the year. Also assume that the company's common stock had a market price of $71 at the end of the year and there was no change in the number of outstanding shares of common stock during the year. Paquired. Assume that Castile Products, Inc., paid dividends of $3.25 per share during the year. Also assume that the company's common stock had a market price of $71 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.) Answer is complete but not entirely correct. Earnings per $ 1.23 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%).) Answer is complete but not entirely correct. Dividend payout ratio 2.6 % 3. Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) Answer is complete and correct. Dividend yield 4.6 % ratio 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Answer is complete but not entirely correct. Price-earnings 57.7 ratio 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Answer is complete but not entirely correct. Price earnings ratio 57.7 5. Book value per share. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Book value per share $ 4.41
