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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