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The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: $ 22,000 160,000 380,000 11,000 573,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 820,000 $ 1,393,000 Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: $ 260,000 370,000 630,000 Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 110,000 653,000 763,000 Total liabilities and stockholders' equity $ 1,393,000

The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: $ 22,000 160,000 380,000 11,000 573,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 820,000 $ 1,393,000 Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: $ 260,000 370,000 630,000 Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 110,000 653,000 763,000 Total liabilities and stockholders' equity $ 1,393,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.) 1. Working capital $ 313,000 2. Current ratio 2.2 3. Acid-test ratio 0.70 4. Debt-to-equity ratio 5. Times interest earned ratio days days days 6. Average collection period 7. Average sale period 8. Operating cycle
Transcribed Image Text: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.) 1. Working capital $ 313,000 2. Current ratio 2.2 3. Acid-test ratio 0.70 4. Debt-to-equity ratio 5. Times interest earned ratio days days days 6. Average collection period 7. Average sale period 8. Operating cycle
Exercise 16-8 (Algo) Selected Financial Ratios [LO16-2, L016-3, LO16-4] The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: $ 22,000 160,000 380,000 11,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 573,000 Property and equipment, net 820,000 Total assets $ 1,393,000 Liabilities and Stockholders' Equity Liabilities: $ 260,000 370,000 630,000 Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 110,000 653,000 763,000 $ 1,393,000 Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 $ 3,300,000 1,137,500 2,162,500 630,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 1,532,500 40,700 1,491,800 447,540 Net income before taxes Income taxes (30%) Net income $ 1,044,260 Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $270,000. All sales were on асcount.
Transcribed Image Text:Exercise 16-8 (Algo) Selected Financial Ratios [LO16-2, L016-3, LO16-4] The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: $ 22,000 160,000 380,000 11,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 573,000 Property and equipment, net 820,000 Total assets $ 1,393,000 Liabilities and Stockholders' Equity Liabilities: $ 260,000 370,000 630,000 Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 110,000 653,000 763,000 $ 1,393,000 Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 $ 3,300,000 1,137,500 2,162,500 630,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 1,532,500 40,700 1,491,800 447,540 Net income before taxes Income taxes (30%) Net income $ 1,044,260 Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $270,000. All sales were on асcount.
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