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.

   5. Days' sales in receivables	fill in the blank 5	days
   6. Inventory turnover	fill in the blank 6
   7. Days' sales in inventory	fill in the blank 7	days
   8. Debt ratio	fill in the blank 8	%
   9. Ratio of liabilities to stockholders' equity	fill in the blank 9
   10. Ratio of fixed assets to long-term liabilities	fill in the blank 10
   11. Times interest earned	fill in the blank 11	times
   12. Times preferred dividends earned	fill in the blank 12	times
   13. Asset turnover	fill in the blank 13
   14. Return on total assets	fill in the blank 14	%
   15. Return on stockholders' equity	fill in the blank 15	%
   16. Return on common stockholders' equity	fill in the blank 16	%
   17. Earnings per share on common stock	$fill in the blank 17
   18. Price-earnings ratio	fill in the blank 18
   19. Dividends per share of common stock	$fill in the blank 19
   20. Dividend yield	fill in the blank 20	%

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