1. 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, 20Y8 and 20Y7
   	20Y8		20Y7
   Sales	$10,000,000		$ 9,400,000
   Cost of goods sold	(5,350,000)		(4,950,000)
   Gross profit	$ 4,650,000		$ 4,450,000
   Selling expenses	$ (2,000,000)		$(1,880,000)
   Administrative expenses	(1,500,000)		(1,410,000)
   Total operating expenses	$ (3,500,000)		$(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, 20Y8 and 20Y7
   	20Y8									20Y7
   	Preferred Stock			Common Stock			Retained Earnings			Preferred Stock			Common Stock			Retained Earnings
   Balances, Jan. 1		$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			$6,180,000			$500,000			$500,000			$5,375,000

   AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7
   	Dec. 31, 20Y8		Dec. 31, 20Y7
   Assets
   Current assets:
   Cash	$ 500,000		$ 400,000
   Marketable securities	1,010,000		1,000,000
   Accounts receivable (net)	740,000		510,000
   Inventories	1,190,000		950,000
   Prepaid expenses	250,000		229,000
   Total current assets	$3,690,000		$3,089,000
   Long-term investments	2,350,000		2,300,000
   Property, plant, and equipment (net)	3,740,000		3,366,000
   Total assets	$9,780,000		$8,755,000
   Liabilities
   Current liabilities	$ 900,000		$ 880,000
   Long-term liabilities:
   Mortgage note payable, 10%	$ 200,000		$ 0
   Bonds payable, 10%	1,500,000		1,500,000
   Total long-term liabilities	$1,700,000		$1,500,000
   Total liabilities	$2,600,000		$2,380,000
   Stockholders' Equity
   Preferred $0.90 stock, $10 par	$ 500,000		$ 500,000
   Common stock, $5 par	500,000		500,000
   Retained earnings	6,180,000		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
   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 yield		%