![jendun123ovrxij](/avatars/27528.jpg)
jendun123ovrxij
12.06.2020 •
Business
Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $270,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $2.55 per share during the year. Also assume that the company’s common stock had a market price of $70 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
Solved
Show answers
More tips
- F Family and Home When and how to start introducing solid foods to your baby?...
- C Computers and Internet Keep Your Mouse Pad Clean: The Right Way to Clean It?...
- F Food and Cooking Homemade French Fries: The Ultimate Guide...
- F Food and Cooking Red Caviar: How to Choose the Best?...
- C Computers and Internet Clearing Cache: How to Speed Up Your Browser...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business Other things the same, automatic stabilizers tend to:...
- B Business Select the angle that correctly completes the law of cosines for this triangle. 62° 17 82 +172 – 2(8) (17)cos __ = 152 90° 15 A. 28° B. 62 C. 180° D. 90...
- B Business if you work for a company and have a 401(k) retirement account, the account contains money you contributed to your retirement and money contributed by your employer. when...
- B Business The proposals submitted to the customer should: A. be set aside and have the team request a best and final offer from every bidder to get a lower price and choose the...
- B Business Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is:...
- B Business A partnership has the following account balances: Cash, $89,000; Other Assets, $635,000; Liabilities, $349,000; Nixon (50 percent of profits and losses), $175,000; Cleveland...
- B Business A merry-go-round rotates at the rate of 0.14 rev/s with an 87 kg man standing at a point 2 m from the axis of rotation. What is the new angular speed when the man walks...
- B Business A monopolistically competitive firm may carn abnormally high profits in the : a. short term, but the process of entry will drive those profits to zero in the long run....
- M Mathematics G(t)= -(t-1)^2 +5g(t)=−(t−1) 2 +5g, left parenthesis, t, right parenthesis, equals, minus, left parenthesis, t, minus, 1, right parenthesis, squared, plus, 5 Over which...
- M Mathematics 20 POINTS) The graph of y = -x2 + 3x - 2 is shown. The ZERO(S) of this function is/are A) -2 B) -2, 2 C) -2, 1, 2 D) 1, 2...
Ответ:
Additional information:
The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc.
Balance Sheet
December 31
Assets
Current assets:
Cash $23,000
Accounts receivable, net $250,000
Merchandise inventory $340,000
Prepaid expenses $8,000
Total current assets $621,000
Property and equipment, net $840,000
Total assets $1,461,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $290,000
Bonds payable, 11%$300,000
Total liabilities $590,000
Stockholders’ equity:
Common stock, $10 par value $130,000
Retained earnings $741,000
Total stockholders’ equity $871,000
Total liabilities and equity $1,461,000
Castile Products, Inc.
Income Statement
For the Year Ended December 31
Sales $2,140,000
Cost of goods sold $1,230,000
Gross margin $910,000
Selling and administrative expenses $600,000
Net operating income $310,000
Interest expense $33,000
Net income before taxes $277,000
Income taxes (30%) $83,100
Net income $193,900
Required:
Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) 3. Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) 5. Book value per share. (Round your answer to 2 decimal places.)
$14.9217.1%3.6%4.7$67Explanation:
1. Earnings per share = net income / average shares outstanding = $193,900 / 13,000 stocks = $14.92
2. Dividend payout ratio = total dividends / net income = ($2.55 x 13,000) / $193,900 = $33,150 / $193,900 = 17.1%
3. Dividend yield ratio = dividend per share / market price per share = $2.55 / $70 = 3.6%
4. Price-earnings ratio = price per share / earnings per share = $70 / $14.92 = 4.7
5. Book value per share = (stockholders' equity - preferred stocks) / total number of stocks outstanding = $871,000 / 13,000 = $67
Ответ: