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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.

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 $53 on December 31, 20Y8.

AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7
20Y8 20Y7
Sales $1,248,300 $1,150,140
Cost of goods sold (429,240) (394,900)
Gross profit $819,060 $755,240
Selling expenses $(285,370) $(345,520)
Administrative expenses (243,090) (202,920)
Total operating expenses (528,460) (548,440)
Operating income $290,600 $206,800
Other revenue and expense:
Other income 15,300 13,200
Other expense (interest) (80,000) (44,000)
Income before income tax $225,900 $176,000
Income tax expense (27,100) (21,500)
Net income $198,800 $154,500

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 $200,000 $230,000 $883,300 $200,000 $230,000 $754,200
Net income 198,800 154,500
Dividends:
Preferred stock (7,000) (7,000)
Common stock (18,400) (18,400)
Balances, Dec. 31 $200,000 $230,000 $1,056,700 $200,000 $230,000 $883,300

AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7
Dec. 31, 20Y8 Dec. 31, 20Y7
Assets
Current assets:
Cash $226,660 $182,670
Temporary investments 343,050 302,710
Accounts receivable (net) 226,300 211,700
Inventories 175,200 131,400
Prepaid expenses 42,880 36,530
Total current assets $1,014,090 $865,010
Long-term investments 510,640 74,773
Property, plant, and equipment (net) 1,300,000 1,170,000
Total assets $2,824,730 $2,109,783
Liabilities
Current liabilities $338,030 $246,483
Long-term liabilities:
Mortgage note payable, 8%, due in 15 years $450,000 $0
Bonds payable, 8%, due in 20 years 550,000 550,000
Total long-term liabilities $1,000,000 $550,000
Total liabilities $1,338,030 $796,483
Stockholders' Equity
Preferred $0.70 stock, $20 par $200,000 $200,000
Common stock, $10 par 230,000 230,000
Retained earnings 1,056,700 883,300
Total stockholders' equity $1,486,700 $1,313,300
Total liabilities and stockholders' equity $2,824,730 $2,109,783

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 %

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