The financial statements for Castile Products, Inc., are given below Castile Pro
ID: 2600215 • Letter: T
Question
The financial statements for Castile Products, Inc., are given below Castile Products, Inc. Balance Sheet December 31 Current assets: $ 23,000 Cash Accounts receivable, net 360.000 10,000 Prepaid expenses Total current assets Property and equipment, net Total assets 880.000 1,513000 Liabilities and Stockholders Equity Currentliablities Bonds payable, 10% 250.000 370,000 620,000 150.000 Total Sabiles Stockholders' equity Common stock, $5 par value Retained eamings Total stockhoiders' equity 893.000 Total labilidies and equity 1,513.000 Castle Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,280,000 1,200,000 Gross margin Selling and administrative expenses 1,080,000 610,000 Net operating income Interest expense 470,000 37,000 Net income before taxes Income taxes(30%) 433.000 29,900 Net income $ 303,100 Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $350,000. All sales were on account. Assume that Castile 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 $55 at the end of the year and there was no change in the number of outstanding shares of common stock during the yearExplanation / Answer
earning per share
net income/no of shares
10.10
net income
303100
no of shares
150000/5
30000
Dividend payout ratio
dividend/EPS
27.2%
Dividend per share
2.75
EPS
10.1
Dividend yield ratio
dividend/market price
5.00%
dividend per share
2.75
market price
55
price earning ratio
market price/eps
20
market price
55
eps
2.75
book value per share
value of equity/no of share
29.77
value of equity
893000
no of shares
30000
earning per share
net income/no of shares
10.10
net income
303100
no of shares
150000/5
30000
Dividend payout ratio
dividend/EPS
27.2%
Dividend per share
2.75
EPS
10.1
Dividend yield ratio
dividend/market price
5.00%
dividend per share
2.75
market price
55
price earning ratio
market price/eps
20
market price
55
eps
2.75
book value per share
value of equity/no of share
29.77
value of equity
893000
no of shares
30000
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