The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account.

Required:

Compute financial ratios as follows:

1. Gross margin percentage.
2. Current ratio.
3. Acid-test ratio.
4. Debt-to-equity ratio.
5. Average collection period.
6. Average sale period.
7. Times interest earned ratio.
8. Book value per share.

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Castile Products, Inc. Balance Sheet December31 Assets Current assets: $ 6,500 Cash Accounts receivable, net 35,000 Merchandise inventory Prepaid expenses Total current assets 70,000 3,500 115,000 185,000 S300,000 Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: S 50,000 Current liabilities Bonds payable, 10% 80,000 130,000 Total liabilities Stockholders' equity: Common stock, S5 per value Retained eamings Total stockholders' equity S 30,000 140,000 170,000 Total liabilities and equity S300,000