Financial statements for castile

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Reference no: EM13941791

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

                                Balance Sheet



Current Assets:-




Accounts receivable, net


 Merchandise Inventory 


Prepaid expenses


Total Current Assets


Property and equipment, net


Total assets


   Liabilities and Stockholder's Equity:-



 Current liabilities


Bond payable, 10%


Total Liabilities


Stockholders' equity:


 Common stock $5 par value


Retained Earnings


Total stockholders' equity


Total liabilities and equity





Castile Products


 Income Statement




Cost of goods sold


Selling and administrative expenses


Net Operating Income


Interest expense


Income taxes (30%)


Net Income 


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


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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