P9-4 Twenty metrics of liquidity, solvency, and profitability 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, 2018 AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 2017 20Y8 2017 Sales $10,000 DOO $ 9,400,000 Cost of goods sold (5.350.0001 14.950.000) Gross profit $ 4,650,000 54450,000 Selling expenses $ 2,000,000 $11.880,000) Administrative expenses (1.500.000 (1.410,000 Total operating expenses $13.500.000 SB. 290.0001 Operating income 5 1.150.000 5 1.160,000 Other revenue and expense Other revenue 150,000 140,000 Other expense interest) (170,000 (150.0001 Income before income tax $ 1.130,000 $ 1.150.000 Income tax expense (230.000 1225.000 Net income 900 000 $ 925,000 AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders'Equity For the Yeats Ended December 31, 2018 and 2017 2018 2017 Preferred Common Retained Preferred Common Retained Stock Stock Earnings Stock Stock 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 5500,000 $500,000 56,180,000 $500,000 $500,000 $5,375,000 Dec 31, 2017 AUTOMOTIVE SOLUTIONS INC Comparative Balance Sheet December 31, 20Y8 and 2017 Dec 31, 2018 Assets Current assets: Cash $ 500.000 Marketable securities 1,010,000 Accounts receivable net) 740.000 Inventories 1.190.000 Prepaid expenses 250.000 Total current assets $3,690,000 Long-term investments 2,350,000 Property, plant, and equipment (neti 3.740.000 Total assets 59,780.000 $ 400,000 1,000,000 510.000 950,000 229.000 $3,089.000 2,300,000 3,366,000 $8,755.000 Chapter 9 Metric-Analysis of Financial Statements $ 900,000 $ 880,000 0 Liabilities Current liabilities Long-term liabilities: Mortgage note payable 10% Bonds payable 10% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.90 stock, 510 par Common stock, 55 par Retained earnings Total stockholders' equity Total liabilities and stockholders'equity $ 200,000 1,500,000 $1,700,000 $2,600,000 $ 500.000 500,000 6,180,000 $7.180,000 $9.780,000 S 1,500,000 $1,500,000 $2,380,000 $ 500,000 500,000 5,375,500 $6,375,000 $8,755,000 Instructions Determine the following measures for 20Y8. Round all ratios to one decimal place. Round earnings per share and dividends per share to the nearest cent 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Days' sales in receivables 6. Inventory turnover 7. Days' sales in inventory 8. Debt ratio 9. Ratio of liabilities to stockholders' equity 10. Ratio of fixed assets to long-term liabilities 11. Times interest earned 12. Times preferred dividends earned 13. Asset turnover 14. Return on total assets 15. Return on stockholders' equity 16. Return on common stockholders equity 17. Eamings per share on common stock 18. Price-earnings ratio 19. Dividends per share of common stock 20. Dividend yield