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Use the income statement and balance sheets below to prepare the following ratios for Miller Corporation for the year 2020. MILLER CORPORATION Assets Cash $140,000

Use the income statement and balance sheets below to prepare the following ratios for Miller Corporation for the year 2020.

MILLER CORPORATION

Assets

Cash

$140,000

$100,000

Account Receivable

220,000

200,000

Inventory

100,000

80,000

Equipment

200,000

120,000

Building

800,000

800,000

Total Assets

$1,460,000

$1,300,000

Liabilities and Stockholders' Equity

Accounts Payable

$115,000

$190,000

Bonds Payable(Long-Term)

480,000

520,000

Common Stock

420,000

405,000

Retained Earnings

445,000

185,000

Tot Liab & Equity

$1,460,000

$1,300,000

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Net Sales

$860,000

Cost of Goods Sold

240,000

Gross Margin

620,000

Operating Expenses

220,000

Operating Income

400,000

Interest Expense

20,000

Income Before Taxes

380,000

Income Taxes

120,000

Net Income

$260,000

Earnings Per Share

$2.00

Required Ratios:

a) Current Ratio

b) Quick Ratio

c) Receivable Turnover

d) Inventory Turnover

e) Profit Margin

f) Return on Assets

g) Debt to Equity Ratio

h) Times Interest Earned

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