Question
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $23,000 Accounts receivable, net
The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc. Balance Sheet December 31
Assets Current assets:
Cash $23,000
Accounts receivable, net 190,000
Merchandise inventory 320,000
Prepaid expenses 10,000
Total current assets 543,000
Property and equipment, net 870,000
Total assets $1,413,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $210,000
Bonds payable, 12% 360,000
Total liabilities 570,000
Stockholders equity:
Common stock, $10 par value $180,000
Retained earnings 663,000
Total stockholders equity 843,000
Total liabilities and equity $1,413,000
Castile Products, Inc. Income Statement For the Year Ended December 31 | |||
Sales | $ | 2,270,000 | |
Cost of goods sold | 1,190,000 | ||
Gross margin | 1,080,000 | ||
Selling and administrative expenses | 620,000 | ||
Net operating income | 460,000 | ||
Interest expense | 43,200 | ||
Net income before taxes | 416,800 | ||
Income taxes (30%) | 125,040 | ||
Net income | $ | 291,760 | |
Account balances at the beginning of the year were: accounts receivable, $160,000; and inventory, $320,000. All sales were on account. |
Assume that Castile Products, Inc., paid dividends of $2.85 per share during the year. Also assume that the companys common stock had a market price of $57 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: |
Earnings per share. (Round your answer to 2 decimal places.)
|
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 yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) |
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) |
Book value per share. (Round your answer to 2 decimal places.) |
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