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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 $58 on December 31,
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8.
AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 | ||||
20Y8 | 20Y7 | |||
Sales | $4,555,200 | $4,196,890 | ||
Cost of goods sold | (1,503,070) | (1,382,820) | ||
Gross profit | $3,052,130 | $2,814,070 | ||
Selling expenses | $(1,095,960) | $(1,321,370) | ||
Administrative expenses | (933,590) | (776,040) | ||
Total operating expenses | (2,029,550) | (2,097,410) | ||
Operating income | $1,022,580 | $716,660 | ||
Other revenue and expense: | ||||
Other income | 53,820 | 45,740 | ||
Other expense (interest) | (280,000) | (154,400) | ||
Income before income tax | $796,400 | $608,000 | ||
Income tax expense | (95,600) | (73,300) | ||
Net income | $700,800 | $534,700 |
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 | $650,000 | $740,000 | $3,088,200 | $650,000 | $740,000 | $2,610,700 | ||||||||||||
Net income | 700,800 | 534,700 | ||||||||||||||||
Dividends: | ||||||||||||||||||
Preferred stock | (9,100) | (9,100) | ||||||||||||||||
Common stock | (48,100) | (48,100) | ||||||||||||||||
Balances, Dec. 31 | $650,000 | $740,000 | $3,731,800 | $650,000 | $740,000 | $3,088,200 |
AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7 | |||||
Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
Assets | |||||
Current assets: | |||||
Cash | $890,810 | $656,290 | |||
Temporary investments | 1,348,260 | 1,087,550 | |||
Accounts receivable (net) | 781,100 | 737,300 | |||
Inventories | 584,000 | 452,600 | |||
Prepaid expenses | 168,538 | 131,260 | |||
Total current assets | $3,772,708 | $3,065,000 | |||
Long-term investments | 2,108,712 | 945,598 | |||
Property, plant, and equipment (net) | 3,850,000 | 3,465,000 | |||
Total assets | $9,731,420 | $7,475,598 | |||
Liabilities | |||||
Current liabilities | $1,109,620 | $1,067,398 | |||
Long-term liabilities: | |||||
Mortgage note payable, 8%, due in 15 years | $1,570,000 | $0 | |||
Bonds payable, 8%, due in 20 years | 1,930,000 | 1,930,000 | |||
Total long-term liabilities | $3,500,000 | $1,930,000 | |||
Total liabilities | $4,609,620 | $2,997,398 | |||
Stockholders' Equity | |||||
Preferred $0.70 stock, $50 par | $650,000 | $650,000 | |||
Common stock, $10 par | 740,000 | 740,000 | |||
Retained earnings | 3,731,800 | 3,088,200 | |||
Total stockholders' equity | $5,121,800 | $4,478,200 | |||
Total liabilities and stockholders' equity | $9,731,420 | $7,475,598 |
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.
The ask is:
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 yieldStep by Step Solution
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