The financial statements for Castile Products, Inc., are given below: ...
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Accounting
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
180,000
Merchandise inventory
350,000
Prepaid expenses
7,000
Total current assets
560,000
Property and equipment, net
850,000
Total assets
$
1,410,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$
290,000
Bonds payable, 11%
310,000
Total liabilities
600,000
Stockholders equity:
Common stock, $5 par value
$
150,000
Retained earnings
660,000
Total stockholders equity
810,000
Total liabilities and equity
$
1,410,000
Castile Products, Inc. Income Statement For the Year Ended December 31
Sales
$
2,120,000
Cost of goods sold
1,250,000
Gross margin
870,000
Selling and administrative expenses
580,000
Net operating income
290,000
Interest expense
34,100
Net income before taxes
255,900
Income taxes (30%)
76,770
Net income
$
179,130
Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $330,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $3.75 per share during the year. Also assume that the companys common stock had a market price of $58 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 final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
3.
Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
4.
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to1 decimal place.)
5.
Book value per share. (Round your answer to 2 decimal places.)
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