Question
Need help with below: Twenty metrics of liquidity, Solvency, and Profitability The comparative financial statements of Automotive SolutionsInc. are as follows. The market price of
Need help with below:
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive SolutionsInc. are as follows. The market price of Automotive Solutions Inc.common stock was $119.70 on December 31, 20Y8.
AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 | ||||
20Y8 | 20Y7 | |||
Sales | $10,000,000 | $ 9,400,000 | ||
Cost of goods sold | (5,350,000) | (4,950,000) | ||
Gross profit | $ 4,650,000 | $ 4,450,000 | ||
Selling expenses | $ (2,000,000) | $(1,880,000) | ||
Administrative expenses | (1,500,000) | (1,410,000) | ||
Total operating expenses | $ (3,500,000) | $(3,290,000) | ||
Operating income | $ 1,150,000 | $ 1,160,000 | ||
Other revenue and expense: | ||||
Other revenue | 150,000 | 140,000 | ||
Other expense (interest) | (170,000) | (150,000) | ||
Income before income tax | $ 1,130,000 | $ 1,150,000 | ||
Income tax expense | (230,000) | (225,000) | ||
Net income | $ 900,000 | $ 925,000 |
AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders’ Equity For the Years Ended December 31, 20Y8 and 20Y7 | ||||||||||||||||||
20Y8 | 20Y7 | |||||||||||||||||
Preferred Stock | Common Stock | Retained Earnings | Preferred Stock | Common Stock | Retained Earnings | |||||||||||||
Balances, Jan. 1 | $500,000 | $500,000 | $5,375,000 | $500,000 | $500,000 | $4,545,000 | ||||||||||||
Net income | 900,000 | 925,000 | ||||||||||||||||
Dividends: | ||||||||||||||||||
Preferred stock | (45,000) | (45,000) | ||||||||||||||||
Common stock | (50,000) | (50,000) | ||||||||||||||||
Balances, Dec. 31 | $500,000 | $500,000 | $6,180,000 | $500,000 | $500,000 | $5,375,000 |
AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7 | |||||
Dec. 31,20Y8 | Dec. 31,20Y7 | ||||
Assets | |||||
Current assets: | |||||
Cash | $ 500,000 | $ 400,000 | |||
Marketable securities | 1,010,000 | 1,000,000 | |||
Accounts receivable (net) | 740,000 | 510,000 | |||
Inventories | 1,190,000 | 950,000 | |||
Prepaid expenses | 250,000 | 229,000 | |||
Total currentassets | $3,690,000 | $3,089,000 | |||
Long-term investments | 2,350,000 | 2,300,000 | |||
Property, plant, and equipment (net) | 3,740,000 | 3,366,000 | |||
Total assets | $9,780,000 | $8,755,000 | |||
Liabilities | |||||
Current liabilities | $ 900,000 | $ 880,000 | |||
Long-term liabilities: | |||||
Mortgage note payable, 10% | $ 200,000 | $ 0 | |||
Bonds payable, 10% | 1,500,000 | 1,500,000 | |||
Total long-termliabilities | $1,700,000 | $1,500,000 | |||
Total liabilities | $2,600,000 | $2,380,000 | |||
Stockholders' Equity | |||||
Preferred $0.90 stock, $10 par | $ 500,000 | $ 500,000 | |||
Common stock, $5 par | 500,000 | 500,000 | |||
Retained earnings | 6,180,000 | 5,375,500 | |||
Total stockholders' equity | $7,180,000 | $6,375,000 | |||
Total liabilities and stockholders' equity | $9,780,000 | $8,755,000 |
Instructions:
Determine the following measures for 20Y8.
Round ratio values to one decimal place and dollar amounts tothe nearest cent. For number of days' sales in receivables andnumber of days' sales in inventory, round intermediate calculationsto the nearest whole dollar and final amounts to one decimal place.Assume there are 365 days in the year.
1. Working capital | $ | |
2. Current ratio | ||
3. Quick ratio | ||
4. Accounts receivable turnover | ||
5. Days' sales in receivables | days | |
6. Inventory turnover | ||
7. Days' sales in inventory | days | |
8. Debt ratio | % | |
9. Ratio of liabilities to stockholders'equity | ||
10. Ratio of fixed assets to long-termliabilities | ||
11. Times interest earned | times | |
12. Times preferred dividends earned | times | |
13. Asset turnover | ||
14. Return on total assets | % | |
15. Return on stockholders’ equity | % | |
16. Return on common stockholders’ equity | % | |
17. Earnings per share on common stock | $ | |
18. Price-earnings ratio | ||
19. Dividends per share of common stock | $ | |
20. Dividend yield | % |
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