Twenty metrics of liquidity,Solvency, andProfitability

The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $65 on December 31, 20Y8.

AUTOMOTIVE SOLUTIONS INC.

Comparative Income Statement

For the Years Ended December 31, 20Y8 and 20Y720Y820Y7Sales$4,662,145$4,295,450Cost of goods sold(1,757,110)(1,616,540)Gross profit$2,905,035$2,678,910Selling expenses$(923,830)$(1,158,410)Administrative expenses(786,965)(680,330)Total operating expenses(1,710,795)(1,838,740)Operating income$1,194,240$840,170Other revenue and expense:Other income62,86053,630Other expense (interest)(328,000)(180,800)Income before income tax$929,100$713,000Income tax expense(111,500)(85,300)Net income$817,600$627,700

AUTOMOTIVE SOLUTIONS INC.

Comparative Statement of Stockholders' Equity

For the Years Ended December 31, 20Y8 and 20Y720Y820Y7Preferred

StockCommon

StockRetained

EarningsPreferred

StockCommon

StockRetained

EarningsBalances, Jan. 1$760,000$870,000$3,604,825$760,000$870,000$3,064,375Net income817,600627,700Dividends:Preferred stock(13,300)(13,300)Common stock(73,950)(73,950)Balances, Dec. 31$760,000$870,000$4,335,175$760,000$870,000$3,604,825

AUTOMOTIVE SOLUTIONS INC.

Comparative Balance Sheet

December 31, 20Y8 and 20Y7Dec. 31, 20Y8Dec. 31, 20Y7AssetsCurrent assets:Cash$866,330$852,750Temporary investments1,311,2101,413,120Accounts receivable (net)905,200854,100Inventories686,200525,600Prepaid expenses163,900170,550Total current assets$3,932,840$3,816,120Long-term investments2,070,993694,488Property, plant, and equipment (net)5,330,0004,797,000Total assets$11,333,833$9,307,608LiabilitiesCurrent liabilities$1,268,658$1,812,783Long-term liabilities:Mortgage note payable, 8%, due in 15 years$1,840,000$0Bonds payable, 8%, due in 20 years2,260,0002,260,000Total long-term liabilities$4,100,000$2,260,000Total liabilities$5,368,658$4,072,783Stockholders' EquityPreferred $0.70 stock, $40 par$760,000$760,000Common stock, $10 par870,000870,000Retained earnings4,335,1753,604,825Total stockholders' equity$5,965,175$5,234,825Total liabilities and stockholders' equity$11,333,833$9,307,608

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 receivablesdays

6.Inventory turnover

7.Days' sales in inventorydays

8.Debt ratio%

9.Ratio of liabilities to stockholders' equity

10.Ratio of fixed assets to long-term liabilities

11.Times interest earnedtimes

12.Times preferred dividends earnedtimes

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