Please answer both problems The financial statements for Castile Products. Inc.,
ID: 2483248 • Letter: P
Question
Please answer both problems
The financial statements for Castile Products. Inc., are given below: Account balances at the beginning of the year were: accounts receivable. $180,000; and inventory, $270,000. All sales were on account. Assets at the beginning of the year totaled $1,050,000, and the stockholders' equity totaled $645,000. Compute the following: Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).) Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of 4 on June 30 of the current year. On that date, the company's assets were: What was the company's working capital on June 30? What was the company's acid-test ratio on June 30? (Round your answer to 2 decimal places.)Explanation / Answer
1 Gross margin Percentage Gross profit/Sales 920000/2100000 = 43.8% 2 Net Profit margin Percentage Net profit/Sales 204400/2100000 = 9.7% 3 Return On total Assets Net Profit/Total Assest 204400/1458000 = 14.0% 4 Return on Equity Net profit/ Shareholders Equity 204400/1458000 14.0% Working Capital Inventory+Accounts receivable- Accounts payable 210000+340000-290000 = 260,000 Acid Test ratio Quick Assets/Current liabilities (20000+210000)/290000 0.79