eBook Calculator Horizontal Analysis of Comparative Financial Statements Amounts
ID: 2530720 • Letter: E
Question
eBook Calculator 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 Comparatlve Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) Cost of goods sold Gross profit Administrative expenses Selling expenses $660,010 395,540 $264,470 $65,706 $132,110 $132,360 1,274 $131,086 30,336 $100,750 $429,310 257,150 $172,160 $43,013 44,127 $87,140 $85,020 1,191 $83,829 13,059 $70,770Explanation / 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) in amount
Increase/(Decrease) in percent
Net Sales
$666,010
$429,310
$236,700
55.1
Cost of Goods Sold
$395,540
$257,150
$138,390
53.8
Gross Profit
$264,470
$172,160
$92,310
53.6
Administrative Expenses
$65,706
$43,013
$22,693
52.8
Selling Expenses
$66,404
$44,127
$22,277
50.5
Total Operating Expenses
$132,110
$87,140
$44,970
51.6
Operating Income
$132,260
$85,020
$47,240
55.6
Interest Expense
$1,274
$1,191
$83
7.0
Income before income taxes
$131,086
$83,829
$47,257
56.4
Income Tax Expense
$30,336
$13,059
$17,277
132.3
Net Income
$100,750
$70,770
$29,980
42.4
Miller Electronics Corporation
Comparative Balance Sheet
For Years Ended December 31, 20-2 and 20-1
20-2 Amount
20-1 Amount
Increase/(Decrease) in amount
Increase/(Decrease) in percent
Assets
Current Assets:
Cash
$43,351
$22,185
$21,166
95.4
Receivables (Net)
$73,800
$47,870
$25,930
54.2
Merchandise inventory
$90,495
$49,661
$40,834
82.2
Supplies and Prepayments
$3,785
$1,186
$2,599
219.1
Total Current Assets
$211,431
$120,902
$90,529
74.9
Property, plant & Equipment
Office Equipment(net)
$11,907.00
$8,350.00
$3,557
42.6
Factory Equipment (net)
$104,408.00
$70,690.00
$33,718
47.7
Total property Plant and Equipment
$116,315.00
$79,040.00
$37,275
47.2
Total Assets
$327,746.00
$199,942.00
$127,804
63.9
Liabilities
Current Liabilities
Notes Payable
$9,550
$6,050
$3,500
57.9
Accounts Payable
$43,710
$30,466
$13,244
43.5
Accrued and withheld payroll taxes
$6,217
$5,377
$840
15.6
Total Current Liabilities
$59,477
$41,893
$17,584
42.0
Stockholder's Equity
Common Stock ($10 Par)
$100,000
$84,000
$16,000
19.0
Retained Earnings
$168,269
$74,049
$94,220
127.2
Total Stockholder's Equity
$268,269
$158,049
$110,220
69.7
Total Liabilities and Stockholder's Equity
$327,746
$199,942
$127,804
63.9
Miller Electronics Corporation
Comparative Income Statement
For Years Ended December 31, 20-2 and 20-1
20-2 Amount
20-1 Amount
Increase/(Decrease) in amount
Increase/(Decrease) in percent
Net Sales
$666,010
$429,310
$236,700
55.1
Cost of Goods Sold
$395,540
$257,150
$138,390
53.8
Gross Profit
$264,470
$172,160
$92,310
53.6
Administrative Expenses
$65,706
$43,013
$22,693
52.8
Selling Expenses
$66,404
$44,127
$22,277
50.5
Total Operating Expenses
$132,110
$87,140
$44,970
51.6
Operating Income
$132,260
$85,020
$47,240
55.6
Interest Expense
$1,274
$1,191
$83
7.0
Income before income taxes
$131,086
$83,829
$47,257
56.4
Income Tax Expense
$30,336
$13,059
$17,277
132.3
Net Income
$100,750
$70,770
$29,980
42.4
Miller Electronics Corporation
Comparative Balance Sheet
For Years Ended December 31, 20-2 and 20-1
20-2 Amount
20-1 Amount
Increase/(Decrease) in amount
Increase/(Decrease) in percent
Assets
Current Assets:
Cash
$43,351
$22,185
$21,166
95.4
Receivables (Net)
$73,800
$47,870
$25,930
54.2
Merchandise inventory
$90,495
$49,661
$40,834
82.2
Supplies and Prepayments
$3,785
$1,186
$2,599
219.1
Total Current Assets
$211,431
$120,902
$90,529
74.9
Property, plant & Equipment
Office Equipment(net)
$11,907.00
$8,350.00
$3,557
42.6
Factory Equipment (net)
$104,408.00
$70,690.00
$33,718
47.7
Total property Plant and Equipment
$116,315.00
$79,040.00
$37,275
47.2
Total Assets
$327,746.00
$199,942.00
$127,804
63.9
Liabilities
Current Liabilities
Notes Payable
$9,550
$6,050
$3,500
57.9
Accounts Payable
$43,710
$30,466
$13,244
43.5
Accrued and withheld payroll taxes
$6,217
$5,377
$840
15.6
Total Current Liabilities
$59,477
$41,893
$17,584
42.0
Stockholder's Equity
Common Stock ($10 Par)
$100,000
$84,000
$16,000
19.0
Retained Earnings
$168,269
$74,049
$94,220
127.2
Total Stockholder's Equity
$268,269
$158,049
$110,220
69.7
Total Liabilities and Stockholder's Equity
$327,746
$199,942
$127,804
63.9
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