Ratio Analysis of Comparative Financial Statements

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

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 $170,505.)
(b)	Return on common stockholders' equity (Total common stockholders' equity on January 1, 20-1, was $109,210.)
(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 $39,680.)
(i)	Merchandise inventory turnover and average number of days to sell inventory (Merchandise inventory on January 1, 20-1, was $48,816.)
(j)	Debt-to-equity ratio
(k)	Asset turnover (Assets on January 1, 20-1, were $170,505.)
(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.)

Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 $654,970 394,890 $260,080 $423,070 257,850 $165,220 $64,309 67,387 Net Sales (all on account) Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes income tax expense $131,696 $128,384 $42,688 44,032 $86,720 $78,500 1,174 $77,326 14,302 $63,024 1,265 $127,119 31,928 Net income $95,191 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: Cash $21,585 $41,592 73,688 92,543 3,675 47,500 50,736 1,174 $120,995 $211,498 Receivables (net) Merchandise inventory Supplies and prepayments Total current assets Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment $11.956 S8,330 105,754 117,710 $329,208 71,340 $79,670 $200,665 Total assets Liabilities Current liabilities Notes payable Accounts payable Accrued and withheld payroll taxes Total current liabilities $9,920 42,876 6,181 $58,977 $5,920 29,824 5,291 $41,035 Stockholders' Equity Common stock ($10 par) Retained earnings Total stockholders' equity $100,000 170,231 $270,231 $329,208 $84,000 75,630 $159,630 $200,665 Total liabilities and stockholders' equity 2. Return on as: b. Ratum on common stockholders' equily 20-2 20-1 c. Earnings per we of common stock: mi II 20-1 d. Back value share of common stock: 20-2 20-1 Quick ratio: 20-2 lo 1 20-1 lo 1 1. Current ratio 11 20-1 11 . Working capital 20-2 h. Receivables urnov 101 20-1 In 1 Avage collection period days days i. Merchandise inventory lover: In 1 lo 1 Average number of days to sell inventory 20-2 II II days days 20-1 j. Debt-to-ylio la 1 20-1 lo 1 k. Asset burn 20-2 lo 1 101 L. Time interest earned ratio: lim 20-1 lim m. Profil marito 20-1 n. Aus-Lo-quity ratio: 101 11 0. Price-earnings raios 20-2 20-1