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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 $59 on December 31, 20Y8.

AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7
20Y8 20Y7
Sales $4,120,485 $3,796,410
Cost of goods sold (1,598,700) (1,470,800)
Gross profit $2,521,785 $2,325,610
Selling expenses $(811,780) $(991,730)
Administrative expenses (691,515) (582,440)
Total operating expenses (1,503,295) (1,574,170)
Operating income $1,018,490 $751,440
Other revenue and expense:
Other income 53,610 47,960
Other expense (interest) (288,000) (158,400)
Income before income tax $784,100 $641,000
Income tax expense (94,100) (76,900)
Net income $690,000 $564,100

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 $680,000 $780,000 $3,236,050 $680,000 $780,000 $2,754,050
Net income 690,000 564,100
Dividends:
Preferred stock (11,900) (11,900)
Common stock (70,200) (70,200)
Balances, Dec. 31 $680,000 $780,000 $3,843,950 $680,000 $780,000 $3,236,050

AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7
Dec. 31, 20Y8 Dec. 31, 20Y7
Assets
Current assets:
Cash $914,320 $589,350
Temporary investments 1,383,830 976,640
Accounts receivable (net) 803,000 751,900
Inventories 598,600 467,200
Prepaid expenses 172,982 117,870
Total current assets $3,872,732 $2,902,960
Long-term investments 1,524,773 -34,570
Property, plant, and equipment (net) 4,680,000 4,212,000
Total assets $10,077,505 $7,080,390
Liabilities
Current liabilities $1,173,555 $404,340
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
Total long-term liabilities $3,600,000 $1,980,000
Total liabilities $4,773,555 $2,384,340
Stockholders' Equity
Preferred $0.70 stock, $40 par $680,000 $680,000
Common stock, $10 par 780,000 780,000
Retained earnings 3,843,950 3,236,050
Total stockholders' equity $5,303,950 $4,696,050
Total liabilities and stockholders' equity $10,077,505 $7,080,390

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

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