Vertical Analysis of Comparative Financial Statements Amounts from the comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are as follows: Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income $639,340 396,750 $242,590 $66,085 66,146 $132,231 $110,359 1,256 $109,103 30,039 $79,064 $412,340 264,660 $147,680 $42,798 43,836 $86,634 $61,046 1,166 $59,880 14,226 $45,654 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 AssetS Current assetS: Cash Receivables (net) Merchandise inventory Supplies and prepayments $43,589 73,375 90,425 3,877 $211,266 $22,708 47,960 49,629 1,168 $121,465 Total current assets Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment $11,644 105,508 $117,152 $328,418 $8,000 71,280 $79,280 $200,745 Total assets Liabilities Current liabilities Notes payable Accounts payable Accrued and withheld payroll taxes $9,720 43,218 6,120 $59,058 $5,920 30,260 5,280 $41,460 Total current liabilities Stockholders' Equity $100,000 169,360 $269,360 $328,418 Common stock ($10 par) $84,000 75,285 $159,285 $200,745 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 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. Do not enter the percent sign. For example, 60% would be entered as 60 Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 Amount 20-2 Percent 20-1 Amount 20-1 Percent Net sales (all on account) $639,340 Cost of goods sold Gross profit Administrative expenses $66,085 Selling expenses Total operating expenses $132,231 Operating income Interest expense Income before income taxes $109,103 Income tax expense Net income $412,340 264,660 $147,680 $42,798 43,836 $86,634 $61,046 1,166 $59,880 14,226 $45,654 396,750 $242,590 66,146 $110,359 1,256 30,039 $79,064 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 Assets 20-2 Amount 20-2 Percent 20-1 Amount 20-1 Percent Current assets: Cash Receivables (net) Merchandise inventory Supplies and prepayments Total current assets Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total prop., plant, and equip. Total assets $43,589 73,375 90,425 3,877 $211,266 $22,708 47,960 49,629 1,168 $121,465 $11,644 105,508 $117,152 $328,418 $8,000 71,280 $79,280 $200,745 Liabilities Current liabilities: Notes payable Accounts payable Accrued and withheld payroll taxes 6,120 Total current liabilities $5,920 30,260 5,280 $41,460 $9,720 43,218 $59,058 Common stock ($10 par) Retained earnings Total stockholders' equity Total liab. and stockholders' equity $328,418 Stockholders' Equity $100,000 169,360 $269,360 $84,000 75,285 $159,285 $200,745