The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 200,000 Merchandise inventory 340,000 Prepaid expenses 8,000 Total current assets 571,000 Property and equipment, net 910,000 Total assets $ 1,481,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 8% 310,000 Total liabilities 550,000 Stockholders' equity: Common stock, $10 par value $ 160,000 Retained earnings 771,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $ 1,481,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 3,325,000 Cost of goods sold 1,067,500 Gross margin 2,257,500 Selling and administrative expenses 610,000 Net operating income 1,647,500 Interest expense 24,800 Net income before taxes 1,622,700 Income taxes (30%) 486,810 Net income $ 1,135,890 Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $270,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 200,000 Merchandise inventory 340,000 Prepaid expenses 8,000 Total current assets 571,000 Property and equipment, net 910,000 Total assets $ 1,481,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 8% 310,000 Total liabilities 550,000 Stockholders' equity: Common stock, $10 par value $ 160,000 Retained earnings 771,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $ 1,481,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 3,325,000 Cost of goods sold 1,067,500 Gross margin 2,257,500 Selling and administrative expenses 610,000 Net operating income 1,647,500 Interest expense 24,800 Net income before taxes 1,622,700 Income taxes (30%) 486,810 Net income $ 1,135,890 Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $270,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The financial statements for Castile Products,
Incorporated, are given below: Castile Products,
Incorporated Balance Sheet December 31 Assets
Current assets: Cash $ 23,000 Accounts receivable,
net 200,000 Merchandise inventory 340,000 Prepaid
expenses 8,000 Total current assets 571,000 Property
and equipment, net 910,000 Total assets $ 1,481,000
Liabilities and Stockholders' Equity Liabilities: Current
liabilities $240,000 Bonds payable, 8% 310,000 Total
liabilities 550,000 Stockholders' equity: Common
stock, $10 par value $ 160,000 Retained earnings
771,000 Total stockholders' equity 931,000 Total
liabilities and stockholders' equity $ 1,481,000 Castile
Products, Incorporated Income Statement For the
Year Ended December 31 Sales $ 3,325,000 Cost of
goods sold 1,067,500 Gross margin 2,257,500 Selling
and administrative expenses 610,000 Net operating
income 1,647,500 Interest expense 24,800 Net
income before taxes 1,622,700 Income taxes (30%)
486,810 Net income $ 1,135,890 Account balances at
the beginning of the year were: accounts receivable,
$150,000; and inventory, $270,000. All sales were on
account. Required: Compute the following financial
data and ratios: 1. Working capital. 2. Current ratio.
(Round your answer to 1 decimal place.) 3. Acid-test
ratio. (Round your answer to 2 decimal places.) 4.
Debt-to-equity ratio. (Round your answer to 2 decimal
places.) 5. Times interest earned ratio. (Round your
answer to 2 decimal places.) 6. Average collection
period. (Use 365 days in a year. Round your
intermediate calculations and final answer to 1
decimal place.) 7. Average sale period. (Use 365 days
in a year. Round your intermediate calculations and
final answer to 1 decimal place.) 8. Operating cycle.
(Use 365 days in a year. Round your intermediate
calculations and final answer to 1 decimal place.)
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