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, 2018.

AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 2018 and 2017
	2018		2017
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, 2018 and 2017
	2018									2017
	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, 2018		Dec. 31, 2017
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	$
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
11. Times interest earned		times
12. Times preferred dividends earned		times
13. Asset turnover
14. Return on total assets		%
15. Return on stockholders’ equity		Answer rating: 100% (QA) 1 Working capital FormulaCurrent Asset Current liabilities 3690000900000 2790000 2 Current ratio For... View the full answer Related Book For   Survey of Accounting ISBN: 978-1305961883 8th edition Authors: Carl S. Warren See More Books Posted Date: Nov 09, 2018 10:07 AM See More Questions Students also viewed these accounting questions 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. Instructions Determine... The following information was taken from the comparative financial statements of Dougal Industries, Inc., for the years ended December 31, 2011 and 2012: Use the direct method to compute cash flows... The following information was taken from the comparative financial statements of Tulip Corporation: Net income for year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... Why do joints tend to be evenly spaced rather than clustered? True or false: If B = S-1AS are similar matrices, then (a) ||B|| = ||A|| (b) ||B||2 = ||A||2 (c) p(B) = p(A) In the following exercise, you are required to review the Basis for Conclusions (BCs) for the standard(s) that provide the accounting guidance for this topic. As the BCs are generally not included in... An international corporation needed several millions of words, from thousands of documents and manuals, translated. The work was contracted to a company that used computer-assisted translation, along... Ren Alverez knew she was in over her head soon after she took the job. Even so, the opportunity for promotion comes along rarely and she believed that she would grow into it. Ms. Alverez is the cost... First, watch the crash course on 'Due Process' listed for this week and then read the short article on a Virginia fight club published by the Washington Post (link below and Word Doc at the bottom):... Prepare the retained earnings statement by dragging and dropping the appropriate accounts into their correct sections. Revenue Service Revenue Expenses Kleene Window Washing Inc. Income Statement For... The deformation of a sheet of the metal unobtanium is recorded to be: 11 = 1.5 104 E12 2.5 x 10-5 E22 3.0 10-5 What are the volume and deviatoric strains of the sample? What are the principal strains... Follow and show/explain every step of the for loop given in Figure 2 and also show what gets printed. # include main () { int m, y; for (m-6; m How do prevailing socio-political structures perpetuate systemic inequalities, particularly in marginalized communities, and what strategies can be employed to dismantle these entrenched disparities? what ways do intersecting axes of oppression, such as race, gender, class, and sexuality, manifest within contemporary societies, and how can a nuanced understanding of these intersections inform... Suppose we have the following declarations: int a, *p; How can we make p point to a? Select one: O O P = &a; *p &p O &a; *a; *a;' ABC Corp. reported $50 billion in revenues for year 2021. Accounts receivable increased from $12 billion in 2020 to $13 billion in 2021. Inventories increased from $5 billion in 2020 to $6 billion in... 1) What is class? 2)What is the difference between default class and public class? 3)What is final class? Q)What is abstract class ? 3) What is object ? Q)Object class Q)toString() Q)Data Hiding... Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net... Provide the steps for the following: In order to install software on the Linux servers, you need to list the commands that are needed for your Red Hat Centos and for the Ubuntu Linux servers. Since... How does a policy of rotating clerical employees from job to job aid in strengthening the control procedures within the control environment? Explain. Pala Co. records all cash receipts on the basis of its cash register tapes. Pala Co. discovered during April 20Y1 that one of its sales clerks had stolen an undetermined amount of cash receipts when... Is the land balance before the accounts have been adjusted the amount that should normally be reported on the balance sheet? Explain. Describe the working of a Carnot cycle. Define thermal efficiency of a heat engine. What are the limitations of Carnot cycle? Previous Question Next Question International Exchange Of Information In Tax Matters 2nd Edition - ISBN: 1786434725 - Free Book Study smarter with the SolutionInn App Get In Touch About Us Contact Us Career Jobs FAQ Campus Ambassador Company Info Security Copyrights Privacy Policy Terms & Condition SolutionInn Fee Scholarship Services Sitemap Fun Definitions Become Tutor Study Help Categories Recent Questions Expert Questions Copyright © 2024 SolutionInn All Rights Reserved. Get the SolutionInn - Study Help App