The financial statements for Castile Products, Inc, are given below Assets Curre

Question

The financial statements for Castile Products, Inc, are given below Assets Current assets Cash Accounts receivable, net Merchandise inventory $ 18,000 240,000 340,000 11,000 Prepaid expenses 609,000 840,000 Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity $1,449,000 Liabilities: 230,000 Current liabilities Bonds payable, 10% 340,000 570,000 150,000 Total liabilities Stockholders' equity Common stock, $10 par value Retained eamings 729,000 879,000 $1.449,000 Total stockholders' equity Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2.230.000 1,230,000 Gross margin Selling and adminlistrative expenses 000,000 560,000 440,000 34,000 Net operating income Interest expense 406,000 121.800 Net income before taxes Income taxes (30%) Net income S 284.200 Account balances at the beginning of the year were accounts recelvable, $180 000 and inventory 320 000 All sales were on account Assume that Castle Products, Inc paid dividends of $2. 75 per share during the year Also assume that the company s common stock had a market price of $63 at the end of the year and there was no change in the

Explanation / Answer

1. Earning per share = Net income/Share outstanding

= 284200/15000

Earning per share = 18.95 per share

2. Dividend payout ratio = DPS*100/EPS

= 2.75*100/18.95

Dividend payout ratio = 14.5%

3. Dividend yield ratio = DPS*100/MPS

= 2.75*100/63

Dividend yield ratio = 4.4%

4. Price earning ratio = MPS/EPS

= 63/18.95

Price earning ratio = 3.3

5. Book value per share = Shareholder's equity/share outstanding

= 879000/15000

Book value per share = 58.60 per share

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.