Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Psychology Of People In Organisations

Authors: Angela Mansi, Melanie Ashleigh

1st Edition

0273755765, 9780273755760

Students also viewed these Accounting questions

Question

f. How do you apply for the position?

Answered: 1 week ago

Question

What is the purpose of the staffing practice called Two-in-aBox?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago