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) $650,220 $420,600 Cost of goods sold 395,410 258,668 Gross profit $254,810 $161,932 Administrative expenses $63,518 $42,288 Selling expenses 65,992 43,936 Total operating expenses $129,510 $86,224 Operating income $125,300 $75,708 Interest expense 1,282 1,204 Income before income taxes $124,018 $74,504 Income tax expense 31,005 13,630 Net income: $93,013 $60,874 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 Current assets: December 31, 20-2 and 20-1 Assets 20-2 20-1 Cash $42,900 $22,006 Receivables (net) Merchandise inventory 73,642 47,510 92,060 50,396 Supplies and prepayments 3,788 1,158 Total current assets $212,390 $121,070 Property, plant, and equipment: Office equipment (net) $12,150 $8,490 Factory equipment (net) 105,360 71,190 Total property, plant, and equipment $117,510 $79,680 Total assets $329,900 $200,750 Liabilities Current liabilities Notes payable $10,000 $6,000 Accounts payable 43,524 30,242 Accrued and withheld payroll taxes 6,250 5,400 Total current liabilities $59,774 $41,642 Stockholders' Equity Common stock ($10 par) $100,000 $84,000 Retained earnings 170,126 75,108 Total stockholders' equity $270,126 $159,108 Total liabilities and stockholders' equity $329,900 $200,750 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) $650,220 100 $420,600 100 Cost of goods sold 395,410 594 258,668 62.1 Gross profit $254,810 $161,932 Administrative expenses $63,518 $42,288 Selling expenses 65,992 43,936 Total operating expenses $129,510 $86,224 Operating income $125,300 $75,708 Interest expense Income before income taxes $124,018 Income tax expense 1,282 1,204) $74,504 Net income 31,005 $93,013 13,630 $60,874 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 $42,900 73,642 Current assets: Cash Receivables (net) Assets 20-2 Amount 20-2 Percent 20-1 Amount 20-1 Percent $22,006 47,510 Merchandise inventory 92,060 50,396 Supplies and prepayments 3,788 1,158 Total current assets $212,390 $121,070 Property, plant, and equipment: Office equipment (net) $12,150 $8,490 Factory equipment (net) 105,360 71,190 Total prop., plant, and equip. $117,510 $79,680 Total assets $329,900 $200,750 Liabilities Current liabilities: Notes payable Accounts payable $10,000 43,524 $6,000 30,242 Accrued and withheld payroll taxes 6,250 5,400 Total current liabilities $59,774 $ 41,642 Stockholders' Equity Common stock ($10 par) $100,000 $84,000 Retained earnings 170,126 75,108 Total stockholders' equity $270,126 $159,108 00000000000 Total stockholders' equity $270,126 $159,108 Total liab. and stockholders' equity $329,900 $200,750