Chapter 24 Homework eBook 1. PR.24.10A Ratio Analysis of Comparative Financial Statements A comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are Miller Electronica Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 $420,600 258,668 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 Net Income $650,220 395,410 $254,810 $63,518 65,992 $129,510 $125,300 1,282 $124,018 31,005 $93,013 $161,932 $42,288 43,936 $86,224 $75,708 1,204 $74,504 13,630 $60,874 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: Progress toms Check My Work Comparative Balance Sheet 20-2 20-1 Assets Current assets: $22,006 47,510 50,396 1,158 $121,070 $8,490 71,190 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) $12,150 Factory equipment (net) 105,360 Total property, plant, and equipment $117,510 Total assets $329,900 Liabilities Current liabilities "Notes payable $10,000 Accounts payable 43,524 Accrued and withheld payroll taxes 6,250 Total current liabilities $59,774 Stockholders' Equity Common stock ($10 par) $100,000 Retained earnings 170,126 Thitaletneholdere en 270 126 $79,680 $200,750 $6,000 30,242 5,400 $41,642 $84,000 75,108 159.108 Check My Work All work saved MacBook Air 24 Homework eBook TOA Total stockholders' equity $270,126 $159,108 Totalbies and stockholders' equity $329,900 $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 $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) (d) Hook value per share of common stock (e) Quick ratio Current ratio (9) Working capital () Receivables turnover and average collection period the receivables on January 1, 20-1, were $39,800) 0) Merchandise inventory turnover and average number of days to sell inventory (Merchandise inventary on January 1, 20-1, was $44.970.) 0) Debt-to-equity ratio Asset tumeve (Assets on January 1, 20-1, were $175,750.) 0) Times interest earned ratio (m) Profit marginata n Assettore (o) Price-carnings rabo (The market price of the common stock was $100.00 and $85.00 on December 31, 20-2 and 20-1. Decly) a. Return on assets 20-2 35.06 V Check My Work titute Score: 20.574 All work saved Sant for Grade Chapter 24 Homework ebook a. Return on assets 1. PR.24.10A 20-2 35.06 % 20-1 32.34% b. Return on common stockholders' equity: 20-2 43.34 % 20-1 45.76 % c. Earnings per share of common stock: 20-2 10.11 20-1 7.25 d. Book value per share of common stock: 20-2 29.36 x 20-1 18.94 e. Quick ratio: 20-2 to 1 20-1 to 1 f. Current ratio: 20-2 to 1 20-1 to 1 9. Working capital 20-2 20-1 h. Receivables turnover 30 1 Progress: 1/1 items Check My Work Assignment Score: 20.59% All work saved Emain Chapter 24 Homework eBook h. Receivables tumover: 1. PR 24.10A 20-2 to 1 to 1 20-1 Average collection period: II Il 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 days 20-1 3. 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 earned ratio: 20-2 times 20-1 times m. Profit margin ratio: 20-2 Check My Work Progress: 1/1 items Assignment Score: 20.53% All work saved eBook . Promenarglidu. 20-2 % 20-1 % n. Assets-to-equity ratio: 20-2 to 1 II II II 20-1 to 1 0. Price-earnings ratio: 20-2 20-1 Fudback My Work a. Profit Margin Ratio Net Income + Net Sales Asset Turnover - Net Sales + Average Assets Returion Assets - Net Income Average Assets b. > Return on Common Stockholders' Equity - Net Income Available to Common Stockholders +