Ratio Analysis of Comparative Financial Statements

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

Miller Electronics Corporation

Comparative Income Statement

For Years Ended December $31,20-2$ and $20-1$

$20-220-1$

Net Sales $($all on account$)$ $$649,290$ $$416,890$

Cost of goods sold $397,820258,780$

Gross profit $$251,470$ $$158,110$

Administrative expenses $$61,933$ $$41,354$

Selling expenses $66,12644,273$

Total operating expenses $$128,059$ $$85,627$

Operating income $$123,411$ $$72,483$

Interest expense $1,2501,172$

Income before income taxes $$122,161$ $$71,311$

Income tax expense $31,05113,386$

Net income $$91,110$ $$57,925$

Miller Electronics Corporation

Comparative Balance Sheet

December $31,20-2$ and $20-1$

$20-220-1$

Assets

Current assets:

Cash $$42,241$ $$22,064$

Receivables $($net$)73,27346,930$

Merchandise inventory $91,13450,952$

Supplies and prepayments $3,7471,107$

Total current assets $$210,395$ $$121,053$

Property, plant, and equipment:

Office equipment $($net$)$ $$11,664$ $$8,120$

Factory equipment $($net$)104,57170,610$

Total property, plant, and equipment $116,235$ $$78,730$

Total assets $$326,630$ $$199,783$

Liabilities

Current liabilities

Notes payable $$10,020$ $$5,920$

Accounts payable $43,20129,864$

Accrued and withheld payroll taxes $6,1355,335$

Total current liabilities $$59,356$ $$41,119$

Stockholders' Equity

Common stock $($$$10$ par$)$ $$100,000$ $$84,000$

Retained earnings $167,27474,664$

Total stockholders' equity $$267,274$ $$158,664$

Total liabilities and stockholders' equity $$326,630$ $$199,783$

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 $$168,123.)$

$($b$)$ Return on common stockholders' equity $($Total common stockholders' equity on January $1,20-1,$ was $$107,224.)$

$($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$)$ Book value per share of common stock

$($e$)$ Quick ratio

$($f$)$ Current ratio

$($g$)$ Working capital

$($h$)$ Receivables turnover and average collection period $($Net receivables on January $1,20-1,$ were $$37,890.)$

$($i$)$ Merchandise inventory turnover and average number of days to sell inventory $($Merchandise inventory on January $1,20-1,$ was $$49,402.)$

$($j$)$ Debt$-$to$-$equity ratio

$($k$)$ Asset turnover $($Assets on January $1,20-1,$ were $$168,123.)$

$($l$)$ Times interest earned ratio

$($m$)$ Profit margin ratio

$($n$)$ Assets$-$to$-$equity ratio

$($o$)$ Price$-$earnings ratio $($The market price of the common stock was $$100\mathrm{.}00$ and $$85\mathrm{.}00$ on December $31,20-2$ and $20-1,$ respectively.$)$

a$.$ Return on assets:

$20-2$ fill in the blank $1$

$\%$

$20-1$ fill in the blank $2$

$\%$

b$.$ Return on common stockholders' equity:

$20-2$ fill in the blank $3$

$\%$

$20-1$ fill in the blank $4$

$\%$

c$.$ Earnings per share of common stock:

$20-2$ $fill in the blank $5$

$20-1$ $fill in the blank $6$

d$.$ Book value per share of common stock:

$20-2$ $fill in the blank $7$

$20-1$ $fill in the blank $8$

e$.$ Quick ratio:

$20-2$ fill in the blank $9$

to $1$

$20-1$ fill in the blank $10$

to $1$

f$.$ Current ratio:

$20-2$ fill in the blank $11$

to $1$

$20-1$ fill in the blank $12$

to $1$

g$.$ Working capital:

$20-2$ $fill in the blank $13$

$20-1$ $fill in the blank $14$

h$.$ Receivables turnover:

$20-2$ fill in the blank $15$

to $1$

$20-1$ fill in the blank $16$

to $1$

Average collection period:

$20-2$ fill in the blank $17$

days

$20-1$ fill in the blank $18$

days

i$.$ Merchandise inventory turnover:

$20-2$ fill in the blank $19$

to $1$

$20-1$ fill in the blank $20$

to $1$

Average number of days to sell inventory:

$20-2$ fill in the blank $21$

days

$20-1$ fill in the blank $22$

days

j$.$ Debt$-$to$-$equity ratio:

$20-2$ fill in the blank $23$

to $1$

$20-1$ fill in the blank $24$

to $1$

k$.$ Asset turnover:

$20-2$ fill in the blank $25$

to $1$

$20-1$ fill in the blank $26$

to $1$

l$.$ Times interest earned ratio:

$20-2$ fill in the blank $27$

times

$20-1$ fill in the blank $28$

times

m$.$ Profit margin ratio:

$20-2$ fill in the blank $29$

$\%$

$20-1$ fill in the blank $30$

$\%$

n$.$ Assets$-$to$-$equity ratio:

$20-2$ fill in the blank $31$

to $1$

$20-1$ fill in the blank $32$

to $1$

o$.$ Price$-$earnings ratio:

$20-2$ fill in the blank $33$

$20-1$ fill in the blank $34$