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
$
22,000
Accounts receivable, net
200,000
Merchandise inventory
390,000
Prepaid expenses
7,000
Total current assets
619,000
Property and equipment, net
910,000
Total assets
$
1,529,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$
260,000
Bonds payable, 9%
350,000
Total liabilities
610,000
Stockholders equity:
Common stock, $5 par value
$
120,000
Retained earnings
799,000
Total stockholders equity
919,000
Total liabilities and equity
$
1,529,000
Castile Products, Inc. Income Statement For the Year Ended December 31
Sales
$
2,260,000
Cost of goods sold
1,190,000
Gross margin
1,070,000
Selling and administrative expenses
610,000
Net operating income
460,000
Interest expense
31,500
Net income before taxes
428,500
Income taxes (30%)
128,550
Net income
$
299,950
Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory, $300,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $3.65 per share during the year. Also assume that the companys common stock had a market price of $63 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
1. Dividend yield ratio
2. Price-earnings ratio
3. Book value per share
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