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 | $ | 19,000 | ||||
Accounts receivable, net | 190,000 | |||||
Merchandise inventory | 340,000 | |||||
Prepaid expenses | 7,000 | |||||
Total current assets | 556,000 | |||||
Property and equipment, net | 820,000 | |||||
Total assets | $ | 1,376,000 | ||||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Current liabilities | $ | 250,000 | ||||
Bonds payable, 8% | 340,000 | |||||
Total liabilities | 590,000 | |||||
Stockholders equity: | ||||||
Common stock, $10 par value | $ | 170,000 | ||||
Retained earnings | 616,000 | |||||
Total stockholders equity | 786,000 | |||||
Total liabilities and equity | $ | 1,376,000 | ||||
Castile Products, Inc. Income Statement For the Year Ended December 31 | |||
Sales | $ | 2,110,000 | |
Cost of goods sold | 1,180,000 | ||
Gross margin | 930,000 | ||
Selling and administrative expenses | 560,000 | ||
Net operating income | 370,000 | ||
Interest expense | 27,200 | ||
Net income before taxes | 342,800 | ||
Income taxes (30%) | 102,840 | ||
Net income | $ | 239,960 | |
Account balances at the beginning of the year were: accounts receivable, $140,000; and inventory, $280,000. All sales were on account. |
Assume that Castile Products, Inc., paid dividends of $2.45 per share during the year. Also assume that the companys 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: |
. | Earnings per share. (Round your answer to 2 decimal places.)
|
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