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

Question

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

     Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $270,000. All sales were on account. Assets at the beginning of the year totaled $1,050,000, and the stockholders’ equity totaled $685,000.

Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).)

Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

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

Explanation / Answer

Castile Prodcuts Inc Details Amt $ Ratio. a Sales                                   2,270,000 b Gross Margin                                   1,050,000 1 Gross Margin percentage =b/a= =1050000/2270000 = 46.26% c Net Income                                       307,160 2 Net Profit Margin %=c/a= =307160/2270000 13.53% d Total Assets beginning                                   1,050,000 e Total Asset ending of year                                   1,471,000 f Average Assets during year                                   1,260,500 3 Return on Total Assets=c/f= =307160/1260500 24.37% g Equity Balance in the beginning                                       685,000 h Equity Balance in the end                                       871,000 i Average Equity for the year                                       778,000 4 Return on Equity =c/i= =307160/778000= 39.48%

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