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 to 1 decimal place.)
|
5. | Book value per share. (Round your answer to 2 decimal places.) |
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