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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 $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. 1. Working capital $fill in the blank 1 2. Current ratio fill in the blank 2 3. Quick ratio fill in the blank 3 4. Accounts receivable turnover fill in the blank 4 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 %

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