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, 20-2 and 20-1
	20-2		20-1
Net Sales (all on account)		$652,630		$416,530
Cost of goods sold		387,960		250,560
Gross profit		$264,670		$165,970
Administrative expenses		$65,676		$42,758
Selling expenses		66,261		43,915
Total operating expenses		$131,937		$86,673
Operating income		$132,733		$79,297
Interest expense		1,331		1,241
Income before income taxes		$131,402		$78,056
Income tax expense		31,171		14,417
Net income		$100,231		$63,639

Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Assets
Current assets:
Cash		$42,195		$21,511
Receivables (net)		73,929		47,430
Merchandise inventory		91,312		50,122
Supplies and prepayments		3,644		1,109
Total current assets		$211,080		$120,172
Property, plant, and equipment:
Office equipment (net)		$12,426		$8,770
Factory equipment (net)		105,101		71,290
Total property, plant, and equipment		$117,527		$80,060
Total assets		$328,607		$200,232
Liabilities
Current liabilities
Notes payable		$10,320		$5,820
Accounts payable		43,063		30,115
Accrued and withheld payroll taxes		6,472		5,572
Total current liabilities		$59,855		$41,507
Stockholders' Equity
Common stock ($10 par)		$100,000		$84,000
Retained earnings		168,752		74,725
Total stockholders' equity		$268,752		$158,725
Total liabilities and stockholders' equity		$328,607		$200,232

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)	$652,630	$416,530	$
Cost of goods sold	387,960	250,560
Gross profit	$264,670	$165,970	$
Administrative expenses	$65,676	$42,758	$
Selling expenses	66,261	43,915
Total operating expenses	$131,937	$86,673	$
Operating income	$132,733	$79,297	$
Interest expense	1,331	1,241
Income before income taxes	$131,402	$78,056	$
Income tax expense	31,171	14,417
Net income	$100,231	$63,639	$

Miller Electronics Corporation
Comparative Balance Sheet
December 31, 20-2 and 20-1
Assets
	20-2 Amount	20-1 Amount	Increase (Decrease)	Percent
Current assets:
Cash	$42,195	$21,511	$
Receivables (net)	73,929	47,430
Merchandise inventory	91,312	50,122
Supplies and prepayments	3,644	1,109
Total current assets	$211,080	$120,172	$
Property, plant, and equipment:
Office equipment (net)	$12,426	$8,770	$
Factory equipment (net)	105,101	71,290
Total prop., plant, and equip.	$117,527	$80,060	$
Total assets	$328,607	$200,232	$
Liabilities
Current liabilities:
Notes payable	$10,320	$5,820	$
Accounts payable	43,063	30,115
Accrued and withheld payroll taxes	6,472	5,572
Total current liabilities	$59,855	$41,507	$
Stockholders' Equity
Common stock ($10 par)	$100,000	$84,000	$
Retained earnings	168,752	74,725
Total stockholders equity	$268,752	$158,725	$
Total liab. and stockholders equity	$328,607	$200,232	$