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)		$652,360		$422,760
Cost of goods sold		398,710		264,170
Gross profit		$253,650		$158,590
Administrative expenses		$62,870		$41,963
Selling expenses		67,346		43,895
Total operating expenses		$130,216		$85,858
Operating income		$123,434		$72,732
Interest expense		1,247		1,167
Income before income taxes		$122,187		$71,565
Income tax expense		30,212		12,528
Net income		$91,975		$59,037

Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Assets
Current assets:
Cash		$43,155		$22,557
Receivables (net)		73,612		47,220
Merchandise inventory		90,882		50,530
Supplies and prepayments		3,730		1,190
Total current assets		$211,379		$121,497
Property, plant, and equipment:
Office equipment (net)		$12,027		$8,500
Factory equipment (net)		104,523		70,220
Total property, plant, and equipment		$116,550		$78,720
Total assets		$327,929		$200,217
Liabilities
Current liabilities
Notes payable		$9,700		$5,900
Accounts payable		42,444		29,918
Accrued and withheld payroll taxes		6,174		5,324
Total current liabilities		$58,318		$41,142
Stockholders' Equity
Common stock ($10 par)		$100,000		$84,000
Retained earnings		169,611		75,075
Total stockholders' equity		$269,611		$159,075
Total liabilities and stockholders' equity		$327,929		$200,217

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)	$652,360	$422,760	$
Cost of goods sold	398,710	264,170
Gross profit	$253,650	$158,590	$
Administrative expenses	$62,870	$41,963	$
Selling expenses	67,346	43,895
Total operating expenses	$130,216	$85,858	$
Operating income	$123,434	$72,732	$
Interest expense	1,247	1,167
Income before income taxes	$122,187	$71,565	$
Income tax expense	30,212	12,528
Net income	$91,975	$59,037	$

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	$43,155	$22,557	$
Receivables (net)	73,612	47,220
Merchandise inventory	90,882	50,530
Supplies and prepayments	3,730	1,190
Total current assets	$211,379	$121,497	$
Property, plant, and equipment:
Office equipment (net)	$12,027	$8,500	$
Factory equipment (net)	104,523	70,220
Total prop., plant, and equip.	$116,550	$78,720	$
Total assets	$327,929	$200,217	$
Liabilities
Current liabilities:
Notes payable	$9,700	$5,900	$
Accounts payable	42,444	29,918
Accrued and withheld payroll taxes	6,174	5,324
Total current liabilities	$58,318	$41,142	$
Stockholders' Equity
Common stock ($10 par)	$100,000	$84,000	$
Retained earnings	169,611	75,075
Total stockholders equity	$269,611	$159,075	$
Total liab. and stockholders equity	$327,929	$200,217	$

Check My Work1 more Check My Work uses remaining.