EXERCISE 13-3 Computing Selected Financial Ratios [LO2 - CC2, 3, 4] The financial statements for Castile Products Inc. are as follows: CASTILE PRODUCTS INC. Balance Sheet December 31 Assets Current assets: Cash $ 6,500 Accounts receivable, net 35,000 Merchandise inventory 70,000 Prepaid expenses 3,500 Total current assets 1 15,000 Property and equipment, net 185 000 Total assets $300,000 Liabilities and Shareholders' Equity Liabilities: Current liabiliti $ 50,000 Bonds payable, 10% 80,000 Total liabilities 130,000 Shareholders' equity: Common shares, no par (6,000 @ $5) $ 30,000 ned earnings 140,000 Total shareholders' equity 170.000 Total liabilities and equity $300,000CASTILE PRODUCTS INC. Income Statement For the Year Ended December 31 Sales $420,000 Less: Cost of goods sold 292.500 Gross margin 127,500 Less: Operating 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 Account balances at the beginning of the year were as follows: 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 (quick) ratio. 4. Debt-to-equity ratio. 5. Accounts receivable turnover in days. 6. Inventory turnover in days. 7. Times interest carned. 8. Book value per share