The financial statements for Castile Products, Inc., are given below: Account ba
ID: 2720961 • Letter: T
Question
The financial statements for Castile Products, Inc., are given below:
Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $300,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $3.35 per share during the year. Also assume that the company’s common stock had a market price of $72 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
Earnings per share. (Round your answer to 2 decimal places.)
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%).)
Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)
Book value per share. (Round your answer to 2 decimal places.)
The financial statements for Castile Products, Inc., are given below:
Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $310,000. All sales were on account. Assets at the beginning of the year totaled $1,100,000, and the stockholders’ equity totaled $635,000.
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).
The financial statements for Castile Products, Inc., are given below:
Explanation / Answer
1. EPS = Net Income / Number of equity shares
= 246050 /15000 = 16.40
2. Dividend Payout = Dividend per share / EPS * 100
= 3.35 / 16.40 * 100 = 20.43%
3. Dividend yield ratio = Dividend per share / Price per share * 100
= 3.35 / 72 * 100 = 4.65%
4. Price Earning ratio = price / EPS
= 72 / 16.40 = 4.39
5. Book Value per share = Total stockholders’ equity /no. of shares
= $828000 / 15000 = $5.52
1. Gross margin percentage = Gross profit/ Sales *100
= 970000 / 2160000 * 100 = 44.91%
2. Net profit margin percentage = Net Income / Sales * 100
= 228690 / 2160000 * 100 = 10.59%
3. Return on total assets = Net Income / Average assets * 100
Average assets = 1100000 + 1472000 / 2 = $1286000
Return on total assets = 228690 / 1286000 * 100 = 17.78%
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