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 $63 on December 31, 20Y8.

AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y820Y7Sales$2,995,920 $2,760,260 Cost of goods sold(1,058,500) (973,820) Gross profit$1,937,420 $1,786,440 Selling expenses$(669,560) $(829,240) Administrative expenses(570,370) (487,010) Total operating expenses(1,239,930) (1,316,250) Operating income$697,490 $470,190 Other revenue and expense: Other income36,710 30,010 Other expense (interest)(216,000) (119,200) Income before income tax$518,200 $381,000 Income tax expense(62,200) (45,700) Net income$456,000 $335,300

AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders Equity For the Years Ended December 31, 20Y8 and 20Y7 20Y820Y7 Preferred StockCommon StockRetained EarningsPreferred StockCommon StockRetained EarningsBalances, Jan. 1 $400,000 $460,000 $1,932,050 $400,000 $460,000 $1,636,850 Net income 456,000 335,300 Dividends: Preferred stock (5,600) (5,600) Common stock (34,500) (34,500) Balances, Dec. 31 $400,000 $460,000 $2,347,950 $400,000 $460,000 $1,932,050

AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7 Dec. 31, 20Y8Dec. 31, 20Y7 Assets Current assets: Cash$568,780 $448,780 Temporary investments860,850 743,680 Accounts receivable (net)540,200 511,000 Inventories408,800 321,200 Prepaid expenses107,605 89,760 Total current assets$2,486,235 $2,114,420 Long-term investments1,010,460 126,690 Property, plant, and equipment (net)3,240,000 2,916,000 Total assets$6,736,695 $5,157,110 Liabilities Current liabilities$828,745 $875,060 Long-term liabilities: Mortgage note payable, 8%, due in 15 years$1,210,000 $0 Bonds payable, 8%, due in 20 years1,490,000 1,490,000 Total long-term liabilities$2,700,000 $1,490,000 Total liabilities$3,528,745 $2,365,060 Stockholders' Equity Preferred $0.70 stock, $50 par$400,000 $400,000 Common stock, $10 par460,000 460,000 Retained earnings2,347,950 1,932,050 Total stockholders' equity$3,207,950 $2,792,050 Total liabilities and stockholders' equity$6,736,695 $5,157,110

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$fill in the blank 1 2. Current ratiofill in the blank 2 3. Quick ratiofill in the blank 3 4. Accounts receivable turnoverfill in the blank 4 5. Days' sales in receivablesfill in the blank 5days6. Inventory turnoverfill in the blank 6 7. Days' sales in inventoryfill in the blank 7days8. Debt ratiofill in the blank 8%9. Ratio of liabilities to stockholders' equityfill in the blank 9 10. Ratio of fixed assets to long-term liabilitiesfill in the blank 10 11. Times interest earnedfill in the blank 11times12. Times preferred dividends earnedfill in the blank 12times13. Asset turnoverfill in the blank 13 14. Return on total assetsfill in the blank 14%15. Return on stockholders equityfill in the blank 15%16. Return on common stockholders equityfill in the blank 16%17. Earnings per share on common stock$fill in the blank 17 18. Price-earnings ratiofill in the blank 18 19. Dividends per share of common stock$fill in the blank 19 20. Dividend yieldfill in the blank 20%