Accounting Assignment | College Homework Help
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 220,000 Merchandise inventory 320,000 Prepaid expenses 11,000 Total current assets 571,000 Property and equipment, net 880,000 Total assets $ 1,451,000 Liabilities and Stockholders’ Equity Liabilities: Current liabilities $ 290,000 Bonds payable, 10% 400,000 Total liabilities 690,000 Stockholders’ equity:
Common stock, $10 par value $ 150,000 Retained earnings 611,000 Total stockholders’ equity 761,000 Total liabilities and stockholders’ equity $ 1,451,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 3,510,000 Cost of goods sold 1,150,500 Gross margin 2,359,500 Selling and administrative expenses 580,000 Net operating income 1,779,500 Interest expense 40,000 Net income before taxes 1,739,500 Income taxes (30%) 521,850 Net income $ 1,217,650 Account balances at the beginning of the year were: accounts receivable, $170,000; 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. (Round your intermediate calculations and final answer to 1 decimal place.) Get Accounting Homework Help today
