Vertical Analysis of Comparative Financial Statements A comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are shown. Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 $656,870 $417,470 Net Sales (all on account) Cost of goods sold 391,890 252,390 $264,980 $165,080 Gross profit Administrative expenses Selling expenses $42,419 $63,601 66,397 44,136 Total operating expenses $129,998 $86,555 $134,982 $78,525 1,265 1,184 Operating income Interest expense Income before income taxes Income tax expense $133,717 $77,341 30,443 14,356 Net income $103,274 $62,985 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: Cash $43,651 $22,715 72,669 47,490 Receivables (net) Merchandise inventory 91,856 50,474 Supplies and prepayments 3,776 1,111 Total current assets $211,952 $121,790 $8,730 Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment $12,314 104,555 70,730 $116,869 $79,460 Total assets $328,821 $201,250 Liabilities Current liabilities $9,760 $5,860 Notes payable Accounts payable Accrued and withheld payroll taxes 43,838 6,295 30,442 5,495 Total current liabilities $59,893 $41,797 Stockholders' Equity $84,000 Common stock ($10 par) Retained earnings $100,000 168,928 75,453 Total stockholders' equity $268,928 $159,453 Total liabilities and stockholders' equity $328,821 $201,250 Required: Prepare a vertical analysis of the income statement and balance sheet. Show each item on the income statement as a percentage of the net sales for each year. On the balance sheet, show each asset item as a percentage of the total assets and each liability and equity item as a percentage of the total liabilities and stockholders' equity. Round percentages to one decimal place. Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-2 20-1 20-1 Amount Percent Amount Percent Net sales (all on account) $656,870 $417,470 Cost of goods sold 391,890 252,390 $264,980 $165,080 Gross profit Administrative expenses $63,601 $42,419 Selling expenses 66,397 44,136 Total operating expenses $129,998 $86,555 Operating income $134,982 $78,525 Interest expense 1,265 1,184 Income before income taxes $133,717 $77,341 Income tax expense 30,443 14,356 Net income $103,274 $62,985 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 Assets 20-2 20-2 20-1 Amount Percent Amount 20-1 Percent Current assets: Cash $43,651 $22,715 Receivables (net) 47,490 72,669 91,856 Merchandise inventory 50,474 Supplies and prepayments 3,776 1,111 Total current assets $211,952 $121,790 Property, plant, and equipment: Office equipment (net) $12,314 $8,730 Factory equipment (net) 104,555 70,730 Total prop., plant, and equip. $116,869 $ 79,460 Total assets $328,821 $201,250 Liabilities Current liabilities: Notes payable $9,760.0 $5,860 Accounts payable 43,838 30,442 Accrued and withheld payroll taxes 6,295 5,495 Total current liabilities $59,893 $41,797 Stockholders' Equity $100,000 Common stock ($10 par) $84,000 Retained earnings 168,928 75,453 Total stockholders' equity $268,928 $159,453 Total liab. and stockholders' equity $328,821 $201,250