Horizontal Analysis of Comparative Financial Statements Amounts from the compara

Question

Horizontal Analysis of Comparative Financial Statements Amounts from the comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are as follows: Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) st of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes $659,750 388,780 $270,970 $65,315 67,677 $132,992 $137,978 1,258 $136,720 31,736 $104,984 $426,050 251,620 $174,430 $43,018 44,413 $87,431 $86,999 1,177 $85,822 12,852 $72,970 ncome tax expense Net income Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets urrent assets: Cash Receivables (net) Merchandise inventory Supplies and prepayments $43,552 73,939 91,984 3,745 $213,220 $22,202 47,360 50,177 1,138 $120,877 Total current assets operty, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment $11,552 105,131 $116,683 $329,903 $8,020 70,650 $78,670 $199,547 Total assets

Explanation / Answer

Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 Amount 20-1 Amount Increase (Decrease) Amount Increase (Decrease) Percent Net sales (all on account) 659750 426050 233700 54.9 Cost of goods sold 388780 251620 137160 54.5 Gross profit 270970 174430 96540 55.3 Administrative expenses 65315 43018 22297 51.8 Selling expenses 67677 44413 23264 52.4 Total operating expenses 132992 87431 45561 52.1 Operating income 137978 86999 50979 58.6 Interest expense 1258 1177 81 6.9 Income before income tax 136720 85822 50898 59.3 Income tax expense 31736 12852 18884 146.9 Net income 104984 72970 32014 43.9 Miller Electronics Corporation Comparative Balance December 31, 20-2 and 20-1 Assets 20-2 Amount 20-1 Amount Increase (Decrease) Amount Increase (Decrease) Percent Current assets: Cash 43552 22202 21350 96.2 Receivables (net) 73939 47360 26579 56.1 Merchandise inventory 91984 50177 41807 83.3 Supplies and prepayments 3745 1138 2607 229.1 Total current assets 213220 120877 92343 76.4 Property, plant, and equipment: Office equipment (net) 11552 8020 3532 44.0 Factory equipment (net) 105131 70650 34481 48.8 Total prop., plant, and equip. 116683 78670 38013 48.3 Total assets 329903 199547 130356 65.3 Liabilities Current liabilities: Notes payable 10130 5930 4200 70.8 Accounts payable 42752 30030 12722 42.4 Accrued and withheld payroll taxes 6120 5260 860 16.3 Total current liabilities 59002 41220 17782 43.1 Stockholders' Equity Common stock ($10 par) 100000 84000 16000 19.0 Retained earnings 170901 74327 96574 129.9 Total stockholders' Equity 270901 158327 112574 71.1 Total liab. and stockholders' equity 329903 199547 130356 65.3

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.