AUTOMOTIVE SOLUTIONS INC.

Comparative Income Statement

For the Years Ended December 31, 20Y8 and 20Y7

20Y8 20Y7

Sales $1,252,680 $1,154,130

Cost of goods sold (520,490) (478,850)

Gross profit $732,190 $675,280

Selling expenses $(228,610) $(290,520)

Administrative expenses(194,740) (170,630)

Total operating expenses(423,350) (461,150)

Operating income $308,840 $214,130

Other revenue and expense:

Other income 16,260 13,670

Other expense (interest)(96,000) (52,800)

Income before income tax$229,100 $175,000

Income tax expense (27,500) (21,100)

Net income $201,600 $153,900

AUTOMOTIVE SOLUTIONS INC.

Comparative Statement of Stockholders' Equity

For the Years Ended December 31, 20Y8 and 20Y7

20Y8 20Y7

Preferred

StockCommonStockRetainedEarningsPreferredStockCommonStockRetainedEarnigBalances, Jan. 1$200,000$230,000$881,325$200,000$230,000$751,675

Net income 201,600153,900

Dividends:

Preferred stock (7,000)(7,000)

Common stock (17,250)(17,250)

Balances, Dec. 31$200,000$230,000$1,058,675$200,000$230,000$881,325

AUTOMOTIVE SOLUTIONS INC.

Comparative Balance Sheet

December 31, 20Y8 and 20Y7

Dec. 31, 20Y8 Dec. 31, 20Y7

Assets

Current assets:Cash $323,610 $194,990

Temporary investments 489,790 323,130

Accounts receivable (net) 248,200 233,600

Inventories189,800146,000Prepaid expenses 61,229 39,000

Total current assets $1,312,629 $936,720

Long-term investments 493,589 159,971

Property, plant, and equipment (net) 1,320,000 1,188,000

Total assets $3,126,218 $2,284,691

Liabilities

Current liabilities $437,543 $313,366

Long-term liabilities:

Mortgage note payable, 8%, due in 15 years $540,000 $0

Bonds payable, 8%, due in 20 years 660,000 660,000

Total long-term liabilities $1,200,000 $660,000

Total liabilities $1,637,543 $973,366

Stockholders' Equity

Preferred $0.70 stock, $20 par $200,000 $200,000

Common stock, $10 par 230,000 230,000

Retained earnings 1,058,675 881,325

Total stockholders' equity $1,488,675 $1,311,325

Total liabilities and stockholders' equity $3,126,218 $2,284,691

Instructions:

Determine the following measures for 20Y8. Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of days' sales in inventory, round intermediate calculations to 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-term liabilities _____

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 _____%