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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

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) $655,750 $428,850
Cost of goods sold 393,340 258,860
Gross profit $262,410 $169,990
Administrative expenses $65,419 $43,162
Selling expenses 66,387 43,799
Total operating expenses $131,806 $86,961
Operating income $130,604 $83,029
Interest expense 1,264 1,171
Income before income taxes $129,340 $81,858
Income tax expense 31,096 12,603
Net income $98,244 $69,255

Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1
20-2 20-1
Assets
Current assets:
Cash $43,208 $22,679
Receivables (net) 74,467 47,710
Merchandise inventory 89,680 49,577
Supplies and prepayments 3,683 1,148
Total current assets $211,038 $121,114
Property, plant, and equipment:
Office equipment (net) $11,667 $8,080
Factory equipment (net) 105,880 71,850
Total property, plant, and equipment $117,547 $79,930
Total assets $328,585 $201,044
Liabilities
Current liabilities
Notes payable $9,900 $6,100
Accounts payable 42,581 29,943
Accrued and withheld payroll taxes 6,396 5,566
Total current liabilities $58,877 $41,609
Stockholders' Equity
Common stock ($10 par) $100,000 $84,000
Retained earnings 169,708 75,435
Total stockholders' equity $269,708 $159,435
Total liabilities and stockholders' equity $328,585 $201,044

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) $655,750 $428,850
Cost of goods sold 393,340 258,860
Gross profit $262,410 $169,990
Administrative expenses $65,419 $43,162
Selling expenses 66,387 43,799
Total operating expenses $131,806 $86,961
Operating income $130,604 $83,029
Interest expense 1,264 1,171
Income before income taxes $129,340 $81,858
Income tax expense 31,096 12,603
Net income $98,244 $69,255
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 $43,208 $22,679
Receivables (net) 74,467 47,710
Merchandise inventory 89,680 49,577
Supplies and prepayments 3,683 1,148
Total current assets $211,038 $121,114
Property, plant, and equipment:
Office equipment (net) $11,667 $8,080
Factory equipment (net) 105,880 71,850
Total prop., plant, and equip. $117,547 $79,930
Total assets $328,585 $201,044
Liabilities
Current liabilities:
Notes payable $9,900 $6,100
Accounts payable 42,581 29,943
Accrued and withheld payroll taxes 6,396 5,566
Total current liabilities $58,877 $41,609
Stockholders' Equity
Common stock ($10 par) $100,000 $84,000
Retained earnings 169,708 75,435
Total stockholders' equity $269,708 $159,435
Total liab. and stockholders' equity $328,585 $201,044

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