Castile Products, Inc. Balance Sheet December 31 Assets Current assets Cash Acco

Question

Castile Products, Inc. Balance Sheet December 31 Assets Current assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 19,000 200,000 360,000 6,000 Total current assets Property and equipment, net 585,000 830,000 Total assets $1,415,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 9% 270,000 390,000 660,000 $ 110,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 645,000 755,000 $1,415,000 Total stockholders' equity Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,160,000 1,220,000 Gross margin Selling and administrative expenses 940,000 620,000 Net operating income Interest expense 320,000 35,100 Net income before taxes Income taxes (30%) 284,900 85,470 Net income S 199,430

Explanation / Answer

1. Earning per share = Net income / No. of shares = $199,430 / 11,000 = $18.13 per share

2. Dividend payout ratio = Dividend per share / Earning per share = $3.25 / $18.13 = 17.9%

3. Dividend yield ratio = Dividend per share / Market price of share = $3.25 / $65 = 5.0%

4. Price earning ratio = Earning per share  / Market price of share = $18.13 / $65 = 27.9%

5. Book value per share = Shareholders equity / No. of shares = $755,000 / 11,000 = $68.64

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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