Question
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable,
The financial statements for Castile Products, Incorporated, are given below:
Castile Products, Incorporated Balance Sheet December 31 | |
Assets | |
---|---|
Current assets: | |
Cash | $ 23,000 |
Accounts receivable, net | 260,000 |
Merchandise inventory | 370,000 |
Prepaid expenses | 9,000 |
Total current assets | 662,000 |
Property and equipment, net | 820,000 |
Total assets | $ 1,482,000 |
Liabilities and Stockholders' Equity | |
Liabilities: | |
Current liabilities | $ 200,000 |
Bonds payable, 11% | 340,000 |
Total liabilities | 540,000 |
Stockholders equity: | |
Common stock, $5 per value | $ 130,000 |
Retained earnings | 812,000 |
Total stockholders equity | 942,000 |
Total liabilities and stockholders equity | $ 1,482,000 |
Castile Products, Incorporated Income Statement For the Year Ended December 31 | |
Sales | $ 2,200,000 |
---|---|
Cost of goods sold | 1,160,000 |
Gross margin | 1,040,000 |
Selling and administrative expenses | 570,000 |
Net operating income | 470,000 |
Interest expense | 37,400 |
Net income before taxes | 432,600 |
Income taxes (30%) | 129,780 |
Net income | $ 302,820 |
Account balances at the beginning of the year were: accounts receivable, $220,000; and inventory, $260,000. All sales were on account.
Assume that Castile Products, Incorporated, paid dividends of $3.05 per share during the year. Also assume that the companys common stock had a market price of $53 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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