Financial statements for castile

Assignment Help Financial Accounting
Reference no: EM13941791

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

                                Balance Sheet

                                 Assets

 
   

Current Assets:-

 
   

 Cash

$6,500

Accounts receivable, net

$35,000

 Merchandise Inventory 

$70,000

Prepaid expenses

$3,500

Total Current Assets

$115,000

Property and equipment, net

$185,000

Total assets

$300,000

   Liabilities and Stockholder's Equity:-

Liabilities:

 
   

 Current liabilities

$50,000

Bond payable, 10%

$80,000

Total Liabilities

$130,000

Stockholders' equity:

 

 Common stock $5 par value

$30,000

Retained Earnings

$140,000

Total stockholders' equity

$170,000

Total liabilities and equity

$300,000

   

 

 

Castile Products

 

 Income Statement

 

Sales 

$420,000

Cost of goods sold

$292,500

Selling and administrative expenses

$89,500

Net Operating Income

$38,000

Interest expense

$8,000

Income taxes (30%)

$9,000

Net Income 

$21,000

Account balances at the beginning of the year were: accounts receivable $25,000, inventory $60,000. all sales were on account.

Required:

Compute financial ratios as follows:

1. Gross margin percentage

2. Current ratio

3. Acid-test ratio

4. Debt-to-equity ratio

5. Average collection period

6. Average sale period

7. Times interest earned ratio

8. Book value per share

Reference no: EM13941791

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