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The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $60 on December 31,

The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $60 on December 31, 20Y8.

AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7
20Y8 20Y7
Sales $3,057,970 $2,817,460
Cost of goods sold (1,131,500) (1,040,980)
Gross profit $1,926,470 $1,776,480
Selling expenses $(688,120) $(821,780)
Administrative expenses (586,180) (482,630)
Total operating expenses (1,274,300) (1,304,410)
Operating income $652,170 $472,070
Other revenue and expense:
Other revenue 34,330 30,130
Other expense (interest) (216,000) (119,200)
Income before income tax $470,500 $383,000
Income tax expense (56,500) (45,600)
Net income $414,000 $337,400
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 $400,000 $460,000 $1,950,300 $400,000 $460,000 $1,647,500
Net income 414,000 337,400
Dividends:
Preferred stock (7,000) (7,000)
Common stock (27,600) (27,600)
Balances, Dec. 31 $400,000 $460,000 $2,329,700 $400,000 $460,000 $1,950,300
AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7
Dec. 31, 20Y8 Dec. 31, 20Y7
Assets
Current assets:
Cash $549,190 $336,120
Temporary investments 831,210 557,010
Accounts receivable (net) 532,900 503,700
Inventories 408,800 321,200
Prepaid expenses 103,910 67,220
Total current assets $2,426,010 $1,785,250
Long-term investments 1,032,360 -346,988
Property, plant, and equipment (net) 3,240,000 2,916,000
Total assets $6,698,370 $4,354,262
Liabilities
Current liabilities $808,670 $53,962
Long-term liabilities:
Mortgage note payable, 8%, due in 15 years $1,210,000 $0
Bonds payable, 8%, due in 20 years 1,490,000 1,490,000
Total long-term liabilities $2,700,000 $1,490,000
Total liabilities $3,508,670 $1,543,962
Stockholders' Equity
Preferred $0.70 stock, $40 par $400,000 $400,000
Common stock, $10 par 460,000 460,000
Retained earnings 2,329,700 1,950,300
Total stockholders' equity $3,189,700 $2,810,300
Total liabilities and stockholders' equity $6,698,370 $4,354,262

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.

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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