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, 21-2 and 20-1 20-2 20-1 Net Sales (all on account) $650,220 $420,600 Cost of goods sold 395,410 258,668 Gross profit $254,810 $161,932 Administrative expenses $63,518 $42,288 Selling expenses 65,992 43,936 Total operating expenses $129,510 $86,224 Operating income $125,300 $75,708 Interest expense 1,282 1,204 Income before income taxes $124,018 $74,504 Income tax expense 31,005 13,630 Net Income $93,013 $60,874 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 Assets Current assets: Cash 20-2 20-1 $42,900 $22,006 Receivables (net) Merchandise inventory 73,642 47,510 92,060 50,396 Supplies and prepayments 3,788 1,158 Total current assets $212,390 $121,070 Property, plant, and equipment: Office equipment (net) $12,150 $8,490 Factory equipment (net) 105,360 71,190 Total property, plant, and equipment $117,510 $79,680 Total assets $329,900 $200,750 Liabilities Current liabilities Notes payable $10,000 $6,000 Accounts payable 43,524 30,242 Accrued and withheld payroll taxes 6,250 5,400 Total current liabilities $59,774 $41,642 Stockholders' Equity Common stock ($10 par) $100,000 $84,000 Retained earnings 170,126 75,108 Total stockholders' equity $270,126 $159,108 Total liabilities and stockholders' equity $329,900 $200,750 Required: Prepare a horizontal analysis. Add columns to show the amount of increase (decrease) and the percentage change. Round percentages to one decimal place. Do not enter the percent sign. For example, 60% would be entered as 60. Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 Amount 20-1 Amount Increase (Decrease) Percent Net sales (all on account) Cost of goods sold $650,220 395,410 $420,600 258,668 229,620 546 V 136,742 V $2.9 Gross profit $254,810 $161,932 92,878 574 Administrative expenses $63,518 $42,288 21,230 502 Selling expenses 65,992 43,936 22,056 502 V Total operating expenses $129,510 $86,224 43,286 V 502 Operating income $125,300 $75,708 49,392 65.5 Interest expense 1,282 1,204 78 63 Income before income taxes $124,018 $74,504 49,314 665 V Income tax expense 31,005 13,630 17,375 127.5 Net income $93,013 $60,874 32,139 V 328 Current assets: Cash Receivables (net) Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 Assets 20-2 Amount 20-1 Amount Increase (Decrease) Percent $42,900 $22,006 20,894 94.95 X 73,642 47,510 26,132 55 Merchandise inventory 92,060 50,396 41,664 82.67 X Supplies and prepayments 3,788 1,158 2,630 227.16 X Total current assets $212,390 $121,070 91,320 75.43 X Property, plant, and equipment: Office equipment (net) $12,150 $8,490 3,660 43.11 X Factory equipment (net) 105,360 71,190 34,170 48 Total prop., plant, and equip. Total assets $117,510 $79,680 $329,900 $200,750 37,830 47.48 X 129,150 64.33 X Liabilities Current liabilities: Notes payable $10,000 $6,000 4,000 66.67 X Accounts payable 43,524 30,242 13,282 43.92 X Accrued and withheld payroll taxes 6,250 5,400 850 15.74 X Total current liabilities $59,774 $41,642 18,132 43.54 x Stockholders' Equity Common stock ($10 par) $100,000 $84,000 16,000 19.05 X Retained earnings 170,126 75,108 95,018 126.51 X Total stockholders' equity $270,126 $159,108 111,018 69.78 X Total liab. and stockholders' equity $329,900 $200,750 129,150 64.33 X