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 $119.70 on December 31, 20Y8. AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 2048 and 2047 2017 $ 9,400,000 (4.950,000) $ 4450,000 59,880,000) 2018 Sales $10,000,000 (5.350,000) Cost of goods sold $4,650,000 Gross profit Selling expenses Administrative expenses $ 2,000,000) (1.500,000) (1,410,000) $ 3.500,000) $3,290,000) $1,150,000 $ 1.160,000 Total operating expenses Operating income Other revenue and expenses Other revenue Other expense (interest Income before income tax Income tax expense 150.000 140,000 (170,000) $ 1.130.000 (150,000) $1,150.000 (225.000) (230,000) $ 900,000 Net Income 5 925,000 AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders' Equity For the Years Ended December 31, 2048 and 2017 2018 2017 Preferred Common Retained Preferred Common Retained Stock Stock Earnings Stock Stock Earnings Balances, Jan. :$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 $500,000 $500,000 $500,000 56,180,000 $500,000 $500,000 $5,375,000 AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 2048 and 2047 Dec. 31, 2017 $ 400,000 1,000,000 > 510,000 950,000 229,000 $3,089,000 2,300,000 3,366,000 $8,755,000 Dec. 31, 20Y8 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 (net) 3,740,000 Total assets $9,780,000 Liabilities Current liabilities $ 900,000 Long-term liabilities: Mortgage note payable, 10% $ 200,000 Bonds payable, 10% 1,500,000 Total long-term liabilities $1,700,000 Total liabilities $2,600,000 Stockholders' Equity Preferred $0.90 stock, $10 par $ 500,000 Common stock, $5 par 500,000 etained earnings 6,180,000 $ 880,000 $0 1,500,000 $1,500,000 $2,380,000 $ 500,000 500,000 5,375,500 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity $9,780,000 $8,755,000 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 days days 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 labilities 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 times times % % 19. Dividends per share of common stock 20. Dividend yield 96
