P9-4 Twenty metrics of Liquidity, solvency, profitability

P9-4 Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The ma ket price of Automotive Solutions Inc. common stock was $119.70 on December 31, 2009 AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 2018 and 2017 20Y8 2017 Sales $10,000,000 5 9400,000 Cost of goods sold 15350,000 (4950.000 Gross profit $ 4,650,000 5 4450.000 Selling expenses 5 12,000,000) $(1.880.000) Administrative expenses (1.500.000 (1410.000 Total operating expenses 53.500.000 $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, 2018 and 2077 2018 2017 Preferred Common Retained Preferred Common Retained Stock Stock Earnings Stock Stock Earnings 5500,000 $500,000 $5,375,000 $500,000 5500,000 $4.545,000 900,000 925.000 Balances, Jan, 1 Net Income Dividends: Preferred stock Common stock Balances. Dec. 31 (45.000) 145,000 (50,000 50,000 600.000 $500,000 $6.180.000 $500,000 $500,000 55275.000 Dec. 31, 2017 AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 2018 and 2017 Dec 31, 2018 Assets Current assets: Cash $ 500.000 Marketable securities 1,010,000 Accounts receivable (net) 740,000 Inventores 1,190,000 Prepaid expenses 250.000 Total current assets $3,690,000 Long-term investments 2.350,000 Property, plant, and equipment (net) 3.740.000 Total assets $9,780,000 $ 400,000 1,000,000 510.000 950.000 229,000 $1.009.000 2.300.000 1366009 58.755.000 Liabilities nalysis of Financial Statements Current liabilities Long-term liabilities: $ 900,000 $ 880,000 Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities $ Total liabilities $ 200,000 1,500,000 $1,700,000 $2,600,000 Stockholders' Equity 0 1,500,000 $1,500,000 $2,380,000 Preferred $0.90 stock, $10 par Common stock $5 par Retained earnings Total stockholders'equity Total liabilities and stockholders' equity $ 500,000 500,000 6,180,000 $7,180,000 $9.780,000 $ 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. Earnings per share on common stock 18. Price-earnings ratio 19. Dividends per share of common stock 20. Dividend yield