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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. 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	$1,837,775		$1,693,230
Cost of goods sold	(724,160)		(666,230)
Gross profit	$1,113,615		$1,027,000
Selling expenses	$(356,140)		$(439,500)
Administrative expenses	(303,375)		(258,120)
Total operating expenses	(659,515)		(697,620)
Operating income	$454,100		$329,380
Other revenue and expense:
Other income	23,900		21,020
Other expense (interest)	(128,000)		(70,400)
Income before income tax	$350,000		$280,000
Income tax expense	(42,000)		(33,500)
Net income	$308,000		$246,500

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		$300,000			$340,000			$1,420,600			$300,000			$340,000			$1,203,300
Net income								308,000									246,500
Dividends:
Preferred stock								(10,500)									(10,500)
Common stock								(18,700)									(18,700)
Balances, Dec. 31		$300,000			$340,000			$1,699,400			$300,000			$340,000			$1,420,600

AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7
	Dec. 31, 20Y8		Dec. 31, 20Y7
Assets
Current assets:
Cash	$387,580		$290,340
Temporary investments	586,610		481,140
Accounts receivable (net)	357,700		335,800
Inventories	262,800		204,400
Prepaid expenses	73,328		58,070
Total current assets	$1,668,018		$1,369,750
Long-term investments	1,016,842		387,104
Property, plant, and equipment (net)	1,760,000		1,584,000
Total assets	$4,444,860		$3,340,854
Liabilities
Current liabilities	$505,460		$400,254
Long-term liabilities:
Mortgage note payable, 8%, due in 15 years	$720,000		$0
Bonds payable, 8%, due in 20 years	880,000		880,000
Total long-term liabilities	$1,600,000		$880,000
Total liabilities	$2,105,460		$1,280,254
Stockholders' Equity
Preferred $0.70 stock, $20 par	$300,000		$300,000
Common stock, $10 par	340,000		340,000
Retained earnings	1,699,400		1,420,600
Total stockholders' equity	$2,339,400		$2,060,600
Total liabilities and stockholders' equity	$4,444,860		$3,340,854

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.

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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