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
	20-2		20-1
Net Sales (all on account)		$649,100		$413,200
Cost of goods sold		393,340		262,810
Gross profit		$255,760		$150,390
Administrative expenses		$63,440		$42,348
Selling expenses		67,225		44,152
Total operating expenses		$130,665		$86,500
Operating income		$125,095		$63,890
Interest expense		1,245		1,152
Income before income taxes		$123,850		$62,738
Income tax expense		31,085		13,517
Net income		$92,765		$49,221

Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Assets
Current assets:
Cash		$44,238		$22,805
Receivables (net)		72,123		46,920
Merchandise inventory		90,562		50,541
Supplies and prepayments		3,842		1,176
Total current assets		$210,765		$121,442
Property, plant, and equipment:
Office equipment (net)		$12,375		$8,740
Factory equipment (net)		105,419		71,790
Total property, plant, and equipment		117,794		$80,530
Total assets		$328,559		$201,972
Liabilities
Current liabilities
Notes payable		$10,130		$5,830
Accounts payable		42,726		29,953
Accrued and withheld payroll taxes		6,158		5,288
Total current liabilities		$59,014		$41,071
Stockholders' Equity
Common stock ($10 par)		$100,000		$84,000
Retained earnings		169,545		76,901
Total stockholders' equity		$269,545		$160,901
Total liabilities and stockholders' equity		$328,559		$201,972

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 $172,462.)
(b)	Return on common stockholders' equity (Total common stockholders' equity on January 1, 20-1, was $108,921.)
(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 $37,780.)
(i)	Merchandise inventory turnover and average number of days to sell inventory (Merchandise inventory on January 1, 20-1, was $48,461.)
(j)	Debt-to-equity ratio
(k)	Asset turnover (Assets on January 1, 20-1, were $172,462.)
(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 $100.00 and $85.00 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