MBA660 Spring 2019 Case 2 The comparative financial statements of Automotive Solutions Inc. are as follows. The mar- ket 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 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: $10,000,000 5,350,000) $ 4,650,000 $ (2,000,000) 1,500,000) S 9,400,000 (4,950,000) $4,450,000 $(1,880,000) 1410,000) $(3,290,000) S 1,160,000 S (3,500,000 s1,150,000 150,000 (170,000) $1,130,000 230,000 $ 900,000 140,000 (150,000 S 1,150,000 (225,000 $ 925,000 Other revenue Other expense (interest) Income before income tax Income tax expense Net income AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders' Equity For the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Preferred Common Retained Preferred Common Retained StockEarnings Balances, Jan. $500,000 $500,000 $5,375,000 $500,000 $500,000 $4,545,000 Stock Stock Earnings Stock 900,000 925,000 Net income Dividends: Preferred stock (45.000) (45,000) 900,000 925,000 Net income Dividends: (45,000) (50,000) Balances, Dec. 31 $500,000 $500,000 S6,180,000 S500,000 $500,000 S5,375,000 Preferred stock Common stock (45,000) (50,000) AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet . December 31, 20Y8 and 20Y7 Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $ 500,000 ,010,000 740,000 1,190,000 250,000 S3,690,000 2,350,000 3,740,000 $9,780,000 $400,000 1,000,000 510,000 950,000 229,000 S3,089,000 2,300,000 3,366,000 $8,755,000 Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current llabilitles Long-term liabilities: S 900,000 $ 880.000 $ 200,000 1,500,000 1,700,000 $2,600,000 Mortgage note payable, 10% 1,500,000 $1,500,000 $2,380,000 Bonds payable, 10% Total long-term liabilities Total liabilities Stockholders'Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retalned earnings Total stockholders' equity Total liabilities and stockholders' equity $ 500,000 500,000 6,180,000 $7,180,000 $9,780,000 S 500,000 500,000 5,375,900 $6,375,000 $8,755,000 Requirements: (round all numbers to 2 decimal place) Perform horizontal analysis for the company's financial statements for 20Y7 and 20Y8 (in Excel). Perform vertical analysis for the company's financial statements for 20Y7 and 20Y8 (in Excel). 1. 2. MBA660 Spring 2019 Case 2 The comparative financial statements of Automotive Solutions Inc. are as follows. The mar- ket 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 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: $10,000,000 5,350,000) $ 4,650,000 $ (2,000,000) 1,500,000) S 9,400,000 (4,950,000) $4,450,000 $(1,880,000) 1410,000) $(3,290,000) S 1,160,000 S (3,500,000 s1,150,000 150,000 (170,000) $1,130,000 230,000 $ 900,000 140,000 (150,000 S 1,150,000 (225,000 $ 925,000 Other revenue Other expense (interest) Income before income tax Income tax expense Net income AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders' Equity For the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Preferred Common Retained Preferred Common Retained StockEarnings Balances, Jan. $500,000 $500,000 $5,375,000 $500,000 $500,000 $4,545,000 Stock Stock Earnings Stock 900,000 925,000 Net income Dividends: Preferred stock (45.000) (45,000) 900,000 925,000 Net income Dividends: (45,000) (50,000) Balances, Dec. 31 $500,000 $500,000 S6,180,000 S500,000 $500,000 S5,375,000 Preferred stock Common stock (45,000) (50,000) AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet . December 31, 20Y8 and 20Y7 Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $ 500,000 ,010,000 740,000 1,190,000 250,000 S3,690,000 2,350,000 3,740,000 $9,780,000 $400,000 1,000,000 510,000 950,000 229,000 S3,089,000 2,300,000 3,366,000 $8,755,000 Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current llabilitles Long-term liabilities: S 900,000 $ 880.000 $ 200,000 1,500,000 1,700,000 $2,600,000 Mortgage note payable, 10% 1,500,000 $1,500,000 $2,380,000 Bonds payable, 10% Total long-term liabilities Total liabilities Stockholders'Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retalned earnings Total stockholders' equity Total liabilities and stockholders' equity $ 500,000 500,000 6,180,000 $7,180,000 $9,780,000 S 500,000 500,000 5,375,900 $6,375,000 $8,755,000 Requirements: (round all numbers to 2 decimal place) Perform horizontal analysis for the company's financial statements for 20Y7 and 20Y8 (in Excel). Perform vertical analysis for the company's financial statements for 20Y7 and 20Y8 (in Excel). 1. 2