Chapter 24 Homework Book Ratio Analysis of Comparative Financial Statements A comparative income statement and balance sheet of Miler Electronics Corporation for the last two years are shown Comparative Income Statement 70-2 $420,600 258,666 $161,932 Net Sales (all on account) Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operang income Interest expense Incore before income taxes Income tax expense $650,220 395,410 $254,810 $63.518 55,992 $129,510 $125 300 1,282 $42.288 43,936 186.224 575,708 1.204 $24.504 13,630 SOU874 $124,016 31,005 Net income $93,013 Mi Electronica Corporation Comparative Bance Sheet December 1, 20-2 and 20-1 20-2 20-1 Assets Current assets Cash $42.900 522,006 Check My Work Su Assignment Score: 0.0% Chapter 24 Homework book 20-1 $27,006 47.510 50,396 1,158 $121.020 58,490 71,190 $79,680 Assets Current assets Cash $42.900 Receivables (net) 73.642 Merchandise inventory 92,060 Supplies and prepayments 3,788 Total current assets $212,390 Property, plant and equipment Office equipment (net) 512,150 Factory equipment (net) 105,360 Total property, plant, and ecupment $117.510 Total assets $329.900 Liabilities Current abilities Notes payable $10,000 Accounts payable 43,524 Accrued and withheld payroll taxes 6,250 Total current liabilities 559,774 Stockholders' Equity Common stock (510 par) $100,000 Retained earnings 170 120 Total stockholders equity $220.126 $200,750 $5,000 30,242 5,400 $41.642 $84,000 25,108 $159, 108 Check My Work Assignment Score: 0.0% Emainst San Cable CBN NYA Cewend Chapter 24 Homework Book Retained earnings 170,126 Total stockholders' equity $270,126 Total liabilities and stockholders equity $329,900 25.10H $159,10 5200,750 Required: Calculate the following ratios and amounts for 20-1 and 20-2. Round all calculations to two decimal places (a) Return on assets (Total assets on January 1, 20-1, were $175.750.) (b) Return on common stockholders' equity (Total common stockholders equity on January 1, 20-1, was $106.944.) (c) Earnings per share of common stock (The average numbers of shares outstanding were 8,400 shares in 20-1 and 9,200 in 20-2.) (6) Book valper share of common stock te) Quick to Current ratio () Working capital th) Recevables turnover and overige collection period (Net receivables on January 1, 20-1, were 519.00) 0 Merchandisewentory tumover and average number of days to sell Inventory (Merchand inventary on Manuary 1, 20-1, was 548,970.) Y Debt-to-equity ratio ) Asset tarver (Assets on January 1, 20-1, were $175.7503 Times interest and natio Im Profit margin to (n) Asut-to-equity ratio (0) Price-camigabi (The market price of the common stock was $100.00 and 515.00 on December 31, 20-2 and 20-1, respectively) a. Humon assets Check My Work Assignment 0.05 Lapter 24 Homework ebook a. Return on assets 20-2 20-1 b. Return on common stockholders' equity 20-2 % 20-1 c. Earnings per share of common stock: 20-2 20-3 d. Book value per share of common stock: 20-2 20-3 e. Quick ratio: 20-2 to 1 20-1 to 1 1. Current ratio: 20-2 to 1 20-1 to 1 9. Working capital 20-2 20-1 h. Receivables turnover Check My Work Assignment Score: 0.0% Chapter 24 Homework eBook h. Receivables tumover 20-2 to! 20-1 tot Average collection period: 20-2 days 20-1 days 1. Merchandise Inventory tumover: 20-2 to 1 20-1 to 1 Average number of days to sell inventory: 20-2 days 20-1 days J. Debtto-equity ratio to 1 20-2 20-1 to! k. Asset turnover 20-2 to 1 20-1 1. Times interest earned ratio times 20-2 mes 20-3 m. Profit margin ratio 20-2 Check My Wor Assignment Score: 0.0% days 20-1 days 1. Debt-to-equity ratio: 20-2 to 1 20-1 to 1 k. Asset turnover 20-2 to 1 20-1 to 1 I. Times interest eamed ratio: 20-2 times 20-1 times m. Profit margin ratio 20-2 20-1 n. Assets-to-equity ratio: 20-2 to 1 20-1 to 1 o. Price-earnings ratio 20-2 20-1 Check My Work Assignment Score: 0.0% Chapter 24 Homework eBook Ratio Analysis of Comparative Financial Statements A comparative Income statement and balance sheet of Miller Electronics Corporation for the last two years are shown. Hitler Electronics Corporation Comparative Income Statement For Year Ended December 31, 20-2 and 20-1 20-2 20-1 $420,600 $650,220 395,410 258,668 $161,932 Net Sales (all on account) Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes Income tax expense $254,810 $63,518 65,992 $129,510 > $125,300 1,282 $42,288 43,936 586,224 $75,708 1,204 $74,504 13,630 $60,874 $124,018 31 005 Net Income $93,013 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets Cash $42,900 $22,006 Check My Work ET Chapter 24 Homework eBook Hier Hectronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: $22,006 47,510 50,395 1,158 5121,070 > Cash $42.900 Receivables (net) 73,642 Merchandise inventory 92,060 Supoles and prepayments 3,788 Total current assets 5212,390 Property, plant, and equipment: Office equipment (het) $12.150 Factory equipment net 105,350 Total property, blant and equipment $117.510 Total $329,900 Liabilities Current abilities Nos payable $10.000 Accents payable Accred and wild payrols 6,250 559,774 Stockholders' Equity Commons (510) $100.000 170,125 Tolstoy $270.126 $8,490 71.190 579.690 $200.750 $6.000 30,242 5,400 $41.542 $14.000 25,106 $159,108 Oy USAM Craquiowa i Oching ang Chapter 24 Homework 51 eBook Total stockholders' equity $270,126 Total liabilities and stockholders equity $329,900 $159,10 $200,750 Required: Calculate the following ratios and amounts for 20-1 and 20-2. Round all calculations to two decimal places (a) Return on assets (Total assets on January 1, 20-1, were 5175,750.) (b) Return on common stockholders' equity (Total common stockholders' equity on January 1, 20-1, was $106,944.) (c) Earnings per share of common stock (The average numbers of shares outstanding were 8,400 shares in 20-1 and 9,200 in 20-2) (d) Book Value per share of common stock (e) Quick ratio (F) Current ratio (9) Working capital (h) Receivables turnover and average collection period (Net recevables on January 1, 20-1, were $39.800.) 0 Merchandise inventory turnover and average number of days to sell inventory (Merchandise inventory on January 1, 20-1, was $48.970.) 0) Debt-to-equity ratio (k) Asset turnover (Assets on January 1, 20-1, were $175,7503 (1) Times interest earned ratio (m) Profit margin ratio (n) Assets-to-equity ratio (0) Price-eamings ratio (The market price of the common stock was $100.00 and $85.00 on December 31, 20-2 and 20-1, respectively) a. Return on assets 20-2 Check My Work Email Assignment Score: 0.0% Uran Crown changing Chapter 24 Homework eBook a. Return on assets: 20-2 20-1 95 b. Retum on common stockholders' equity: 20-2 % 20-1 % c. Earnings per share of common stock: 20-2 20-1 d. Book value per share of common stock: 20-2 20-1 e. Quick ratio: 20-2 to 1 20-1 f. Current ratio: to 1 20-2 to 1 20-1 9. Working capital: 20-2 $ 20-1 h. Receivables turnover: Check My Work Email Assignment Score: 0.0% Chapter 24 Homework eBook h. Receivables turnover: 20-2 to 1 20-1 to 1 Average collection period: 20-2 days 20-1 days 1. Merchandise inventory tumover: 20-2 to 1 20-1 to 1 Average number of days to sell inventory: 20-2 days 20-1 days 1. Debt-to-equity ratio: 20-2 to 1 20-1 to 1 k. Asset tumover: 20-2 to 1 20-1 to 1 I. Times interest earned ratio: times 20-2 times 20-1 m. Profit margin ratio: 20-2 Check My Work Assignment Score: 0.0% days 1. Debt-to-equity ratio: 20-2 to 1 20-1 to 1 k. Asset turnover: 20-2 to 1 20-1 to 1 1. Times interest earned ratio: > 20-2 times 20-1 times m. Profit margin ratio: 20-2 20-1 % n. Assets-to-equity ratio: 20-2 to 1 to 1 20-1 o. Price-earnings ratio: 20-2 20-1 Check My Work Assignment Score: 0.0%