Ratio Analysis of Comparative Financial Statements A comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are shown. 202201 Assets Current assets: \begin{tabular}{lrr} Cash & & \\ Receivables (net) & $41,813 & $21,667 \\ \hline Merchandise inventory & 71,771 & 46,510 \\ \hline Supplies and prepayments & 92,450 & 50,473 \\ \hline Total current assets & 3,752 & 1,135 \\ \cline { 2 - 3 } \end{tabular} Property, plant, and equipment: \begin{tabular}{lrrr} Office equipment (net) & & & \\ Factory equipment (net) & 12,165 & $8,590 \\ Total property, plant, and equipment & 104,508 & 70,700 \\ \hline Total assets & 116,673 & $79,290 \\ & $326,459 & $199,075 \\ \hline \hline \end{tabular} Liabilities Current liabilities \begin{tabular}{|lrr|} \hline Notes payable & $10,600 & $6,100 \\ \hline Accounts payable & 43,359 & 30,498 \\ Accrued and withheld payroll taxes & 6,295 & 5,495 \\ \hline Total current liabilities & $60,254 & $42,093 \\ \multicolumn{1}{|c|}{ Stockholders' Equity } & & \\ Common stock (\$10 par) & $100,000 & $84,000 \\ Retained earnings & 166,205 & 72,982 \\ \hline Total stockholders' equity & $266,205 & $156,982 \\ \hline Total liabilities and stockholders' equity & $326,459 & $199,075 \\ \hline \end{tabular} Calculate the following ratios arid amounts for 20 -1 and 202. Round all calculations to two decimal places. (a) Retum on assets (Total assets on January 1,201, were $168,255.) (b) Retum on common stockholders' equity (Total common stockholders' equity on January 1, 20-1, was $105,162. ) (c) Earnings per share of common stock (The average numbers of shares cutstanding 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) Recelvables turnover and average collection period (Net recelvables on January 1, 20-1, were $38,590. ) (i) Merchandise inventory tumover and average number of days to seil inventory (Merchandise inventory on January 1 , 20-1, was 548 , 303. ) (1) Debt-to-equity ratio (k) Asset turnover (Assets on January 1, 20-1, were $168,255. (i) Times interest eamed ratio (m) Profit margin ratio (a) Assets-to equity ratio (o) Price-earnings ratio (The market price of the common stock was $100.00 and $85.00 on December 31,202 and 201, respectively.) a. Return on assets: 202201 of b. Return on common stockholders' equity: 202 c. Earnings per share of common stock: 202201 h. Receivables turnover: 202 to 1 20-1 to 1 Average collection period: 202 days 20-1 days i. Merchandise inventory turnover: 202 to 1 201 to 1 Average number of days to sell inventory: 202 days 20-1 days j. Debt-to-equity ratio: 202 to 1 201 to 1 k. Asset turnover: 202 to 1 20-1 to 1 1. Times interest earned ratio: 202 times 20-1 times k. Asset turnover: 202201 to1 to 1 I. Times interest earned ratio: 202 times 20-1 times m. Profit margin ratio: 202 % 20-1 % n. Assets-to-equity ratio: 202 to 1 20-1 to 1 o. Price-earnings ratio: 20-2 20-1
