Question

In: Accounting

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 18,000 Accounts receivable, net 250,000 Merchandise inventory 330,000 Prepaid expenses 8,000 Total current assets 606,000 Property and equipment, net 880,000 Total assets $ 1,486,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 260,000 Bonds payable, 8% 340,000 Total liabilities 600,000 Stockholders’ equity: Common stock, $5 per value $ 140,000 Retained earnings 746,000 Total stockholders’ equity 886,000 Total liabilities and stockholders’ equity $ 1,486,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 3,760,000 Cost of goods sold 1,221,000 Gross margin 2,539,000 Selling and administrative expenses 620,000 Net operating income 1,919,000 Interest expense 27,200 Net income before taxes 1,891,800 Income taxes (30%) 567,540 Net income $ 1,324,260 Account balances at the beginning of the year were: accounts receivable, $220,000; and inventory, $330,000. 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.)

Solutions

Expert Solution


Related Solutions

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31   Assets   Current assets:      Cash $ 19,000      Accounts receivable, net 230,000      Merchandise inventory 350,000      Prepaid expenses 11,000   Total current assets 610,000   Property and equipment, net 820,000   Total assets $ 1,430,000   Liabilities and Stockholders' Equity   Liabilities:      Current liabilities $ 260,000      Bonds payable, 11% 380,000   Total liabilities 640,000   Stockholders’ equity:      Common stock, $5 par value $ 200,000      Retained earnings 590,000   Total stockholders’ equity 790,000   Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts receivable, net 210,000 Merchandise inventory 350,000 Prepaid expenses 9,000 Total current assets 590,000 Property and equipment, net 860,000 Total assets $ 1,450,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 200,000 Bonds payable, 10% 310,000 Total liabilities 510,000 Stockholders’ equity: Common stock, $10 per value $ 120,000 Retained earnings 820,000 Total stockholders’ equity 940,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31   Assets   Current assets:      Cash $ 19,000      Accounts receivable, net 200,000      Merchandise inventory 330,000      Prepaid expenses 8,000   Total current assets 557,000   Property and equipment, net 880,000   Total assets $ 1,437,000   Liabilities and Stockholders' Equity   Liabilities:      Current liabilities $ 290,000      Bonds payable, 12% 360,000   Total liabilities 650,000   Stockholders’ equity:      Common stock, $5 par value $ 120,000      Retained earnings 667,000   Total stockholders’ equity 787,000   Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 19,000 Accounts receivable, net 190,000 Merchandise inventory 400,000 Prepaid expenses 10,000 Total current assets 619,000 Property and equipment, net 840,000 Total assets $ 1,459,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 260,000 Bonds payable, 12% 360,000 Total liabilities 620,000 Stockholders’ equity: Common stock, $5 per value $ 200,000 Retained earnings 639,000 Total stockholders’ equity 839,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 Accounts receivable, net 190,000 Merchandise inventory 360,000 Prepaid expenses 7,000 Total current assets 578,000 Property and equipment, net 890,000 Total assets $ 1,468,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 230,000 Bonds payable, 8% 400,000 Total liabilities 630,000 Stockholders’ equity: Common stock, $5 per value $ 160,000 Retained earnings 678,000 Total stockholders’ equity 838,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
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 230,000 Merchandise inventory 340,000 Prepaid expenses 7,000 Total current assets 597,000 Property and equipment, net 820,000 Total assets $ 1,417,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 10% 380,000 Total liabilities 620,000 Stockholders’ equity: Common stock, $5 per value $ 200,000 Retained earnings 597,000 Total stockholders’ equity 797,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 22,000 Accounts receivable, net 220,000 Merchandise inventory 350,000 Prepaid expenses 9,000 Total current assets 601,000 Property and equipment, net 830,000 Total assets $ 1,431,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 9% 330,000 Total liabilities 570,000 Stockholders’ equity: Common stock, $5 par value $ 100,000 Retained earnings 761,000 Total stockholders’ equity 861,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 22,000 Accounts receivable, net 220,000 Merchandise inventory 300,000 Prepaid expenses 9,000 Total current assets 551,000 Property and equipment, net 870,000 Total assets $ 1,421,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 290,000 Bonds payable, 8% 380,000 Total liabilities 670,000 Stockholders’ equity: Common stock, $5 par value $ 140,000 Retained earnings 611,000 Total stockholders’ equity 751,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
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 200,000 Merchandise inventory 370,000 Prepaid expenses 7,000 Total current assets 600,000 Property and equipment, net 840,000 Total assets $ 1,440,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 240,000 Bonds payable, 8% 380,000 Total liabilities 620,000 Stockholders’ equity: Common stock, $5 par value $ 160,000 Retained earnings 660,000 Total stockholders’ equity 820,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31   Assets   Current assets:      Cash $ 22,000      Accounts receivable, net 240,000      Merchandise inventory 330,000      Prepaid expenses 8,000   Total current assets 600,000   Property and equipment, net 900,000   Total assets $ 1,500,000   Liabilities and Stockholders' Equity   Liabilities:      Current liabilities $ 210,000      Bonds payable, 10% 360,000   Total liabilities 570,000   Stockholders’ equity:      Common stock, $5 par value $ 110,000      Retained earnings 820,000   Total stockholders’ equity 930,000   Total liabilities...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT