Chapter 16 Homework Problem #1 The financial statements for Castile Products, Inc. are given below: A...

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Chapter 16 Homework Problem #1 The financial statements for Castile Products, Inc. are given below: A Assets Current assets: Castile Products, Inc. Balance Sheet December 31 Cash.... Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets ... Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities.... Bonds payable, 10% .. Total liabilities .. Stockholders' equity: .... Common stock, $5 per value .. Retained earnings .. Total stockholders' equity Total liabilities and stockholders' equity .... $ 6,500 35,000 70,000 $3,500 115,000 185,000 boog to m $300,000 $ 50,000 80,000 130,000 30,000 140,00009071297 170,000 $300,000 moted smoonl BONES D Castile Products, Inc. Income Statement For the Year Ended December 31 Sales.... $420,000 Cost of goods sold .. 292,500 Gross margin...... 127,500 Selling and administrative expenses 89,500 Net operating income 38,000 Interest expense.... 8,000 Net income before taxes. 30,000 Income taxes (30%). 9,000 Net income. $ 21,000 mpetitors. This could mean wr Account balances at the beginning of the year were: Accounts Receivable - $25,000 Inventory - $60,000 All sales were on account. 6,000 shares of common stock were outstanding all year. The market price at year end is $50. Compute the following financial data and ratios: 1. Working capital 2. Current ratio 3. Average collection period 4. Average sales period 5. Gross margin percentage 6. Earnings per share 7. Price-Earnings Ratio Chapter 16 Homework Problem #1 The financial statements for Castile Products, Inc. are given below: A Assets Current assets: Castile Products, Inc. Balance Sheet December 31 Cash.... Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets ... Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities.... Bonds payable, 10% .. Total liabilities .. Stockholders' equity: .... Common stock, $5 per value .. Retained earnings .. Total stockholders' equity Total liabilities and stockholders' equity .... $ 6,500 35,000 70,000 $3,500 115,000 185,000 boog to m $300,000 $ 50,000 80,000 130,000 30,000 140,00009071297 170,000 $300,000 moted smoonl BONES D Castile Products, Inc. Income Statement For the Year Ended December 31 Sales.... $420,000 Cost of goods sold .. 292,500 Gross margin...... 127,500 Selling and administrative expenses 89,500 Net operating income 38,000 Interest expense.... 8,000 Net income before taxes. 30,000 Income taxes (30%). 9,000 Net income. $ 21,000 mpetitors. This could mean wr Account balances at the beginning of the year were: Accounts Receivable - $25,000 Inventory - $60,000 All sales were on account. 6,000 shares of common stock were outstanding all year. The market price at year end is $50. Compute the following financial data and ratios: 1. Working capital 2. Current ratio 3. Average collection period 4. Average sales period 5. Gross margin percentage 6. Earnings per share 7. Price-Earnings Ratio