Horizontal Analysis of Comparative Financial Statements

A comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are shown.

Required:

Prepare a horizontal analysis. Enter the amount of increase (decrease) and the percentage change. Round percentages to one decimal place.

Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1

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) Cost of goods sold $654,400 394,530 $417,500 255,510 $161,990 $259,870 $63,825 66,906 $41,666 43,896 $130,731 $85,562 Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes income tax expense $76,428 $129,139 1,336 1,243 $127,803 30,058 $75,185 13,577 Net income $97,745 $61,608 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: $43,125 $21,956 73,300 92,919 3,866 $213,210 46,790 50,988 1,178 $120,912 S8,290 $11,840 106,033 71,790 $80,080 $117,873 $331,083 $200,992 Cash Receivables (net) Merchandise inventory Supplies and prepayments Total current assets Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment Total assets Liabilities Current liabilities Notes payable Accounts payable Accrued and withheld payroll taxes Total current liabilities Stockholders' Equity Common stock ($10 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $9,340 43,471 6,349 $59,160 $5,840 30,312 5,549 $41,701 $84,000 $100,000 171,923 $271,923 $331,083 75,291 $159,291 $200,992