Question
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 22,000 Accounts receivable,
The financial statements for Castile Products, Incorporated, are given below:
Castile Products, Incorporated Balance Sheet December 31 | |||||
Assets | |||||
Current assets: | |||||
Cash | $ 22,000 | ||||
Accounts receivable, net | 250,000 | ||||
Merchandise inventory | 390,000 | ||||
Prepaid expenses | 9,000 | ||||
Total current assets | 671,000 | ||||
Property and equipment, net | 880,000 | ||||
Total assets | $ 1,551,000 | ||||
Liabilities and Stockholders' Equity | |||||
Liabilities: | |||||
Current liabilities | $ 230,000 | ||||
Bonds payable, 9% | 300,000 | ||||
Total liabilities | 530,000 | ||||
Stockholders' equity: | |||||
Common stock, $10 per value | $ 100,000 | ||||
Retained earnings | 921,000 | ||||
Total stockholders' equity | 1,021,000 | ||||
Total liabilities and stockholders' equity | $ 1,551,000 |
Castile Products, Incorporated Income Statement For the Year Ended December 31 | ||
Sales | $ 2,190,000 | |
Cost of goods sold | 1,250,000 | |
Gross margin | 940,000 | |
Selling and administrative expenses | 580,000 | |
Net operating income | 360,000 | |
Interest expense | 27,000 | |
Net income before taxes | 333,000 | |
Income taxes (30%) | 99,900 | |
Net income | $ 233,100 |
Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $350,000. All sales were on account.
Assume that Castile Products, Incorporated paid dividends of $2.75 per share during the year. Also assume that the company's common stock had a market price of $68 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 percentage final answer to 2 decimal places.)
3. Dividend yield ratio.(Round your percentage answer to 2 decimal places.)
4. Price-earnings ratio.(Round your intermediate calculations and final answer to 2 decimal places.)
5. Book value per share.(Round your answer to 2 decimal places.)
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