Twenty metrics of liquidity, Solvency, and Profitability 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, 2018 and 2017 2018 2017 Sales $5,015,100 $4,620,700 Cost of goods sold (1,594,320) (1,466,770) Gross profit $3,420,780 $3,153,930 Selling expenses $(1,475,670) Administrative expenses $(1,229,360) (1,047,240) (2,276,600) (866,660) Total operating expenses (2,342,330) Operating income $1,144,180 $811,600 Other revenue and expense: Other income 60,220 51,800 Other expense interest) (288,000) (158,400) Income before income tax $916,400 $705,000 Income before income tax $705,000 $916,400 (110,000) Income tax expense (84,200) Net income $806,400 $620,800 AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders' Equity For the Years Ended December 31, 2018 and 2017 2018 2017 Preferred Stock Common Stock Retained Earnings Preferred Stock Common Stock Retained Earnings Balances, Jan. 1 $760,000 $870,000 $3,595,200 $760,000 $870,000 $3,031,200 Net income 806,400 620,800 Dividends: Preferred stock (13,300) Common stock (43,500) (13,300) (43,500) $3,595,200 Balances, Dec. 31 $760,000 $870,000 $4,344,800 $ 870,000 December 31, 2048 and 2017 Dec. 31, 20Y8 Dec. 31, 2017 Assets Current assets: Cash $840,520 $754,570 Temporary investments 1,272,150 1,250,420 Accounts receivable (net) 861,400 810,300 Inventories 642,400 496,400 Prepaid expenses 159,018 150,910 Total current assets $3,775,488 $3,462,600 Long-term investments 770,760 2,299,152 4,680,000 Property, plant, and equipment (net) 4,212,000 Total assets $10,754,640 $8,445,360 Liabilities Current liabilities $1,179,840 $1,240,160 Long-term liabilities: Mortgage note payable, 8%, due in 15 years $1,620,000 $0 Bonds payable, 8%, due in 20 years 1,980,000 1,980,000 Bonds payable, 8%, due in 20 years 1,980,000 1,980,000 Total long-term liabilities $3,600,000 $1,980,000 Total liabilities $4,779,840 $3,220,160 Stockholders' Equity Preferred $0.70 stock, $40 par $760,000 $760,000 Common stock, $10 par 870,000 870,000 Retained earnings 4,344,800 3,595,200 Total stockholders' equity $5,974,800 $5,225,200 Total liabilities and stockholders' equity $10,754,640 $8,445,360 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. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 1. Working capital $ 2. Current ratio 2,595,648 3.2 2.5 3. Quick ratio 4. Accounts receivable turnover 5. Days' sales in receivables x days 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 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 0 X %
