Question
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 |
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|
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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 | ||
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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 | ||
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| INCOME STATEMENT | |||
FOR THE YEAR ENDED DECEMBER 31, 2020 | ||||
Net Sales |
| $860,000 |
| |
Cost of Goods Sold | 240,000 |
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Gross Margin | 620,000 |
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Operating Expenses | 220,000 |
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Operating Income | 400,000 |
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Interest Expense | 20,000 |
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Income Before Taxes | 380,000 |
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Income Taxes | 120,000 |
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Net Income | $260,000 |
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Earnings Per Share | $2.00 |
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Required Ratios: |
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a) Current Ratio |
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b) Quick Ratio |
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c) Receivable Turnover | |
d) Inventory Turnover | |
e) Profit Margin |
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f) Return on Assets |
|
g) Debt to Equity Ratio | |
h) Times Interest Earned |
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