Horizontal 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...

Horizontal 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)		$652,380	$415,280
Cost of goods sold		390,370	259,050
Gross profit		$262,010	$156,230
Administrative expenses		$63,250	$41,768
Selling expenses		65,883	43,889
Total operating expenses		$129,133	$85,657
Operating income		$132,877	$70,573
Interest expense		1,231	1,152
Income before income taxes		$131,646	$69,421
Income tax expense		30,197	13,283
Net income		$101,449	$56,138

Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2	20-1
Assets
Current assets:
Cash		$41,957	$21,609
Receivables (net)		73,204	47,880
Merchandise inventory		91,275	49,755
Supplies and prepayments		3,776	1,145
Total current assets		$210,212	$120,389
Property, plant, and equipment:
Office equipment (net)		$11,549	$8,040
Factory equipment (net)		105,174	70,720
Total property, plant, and equipment		$116,723	$78,760
Total assets		$326,935	$199,149
Liabilities
Current liabilities
Notes payable		$10,500	$6,000
Accounts payable		43,283	29,947
Accrued and withheld payroll taxes		6,224	5,354
Total current liabilities		$60,007	$41,301
Stockholders' Equity
Common stock ($10 par)		$100,000	$84,000
Retained earnings		166,928	73,848
Total stockholders' equity		$266,928	$157,848
Total liabilities and stockholders' equity		$326,935	$199,149

Required:

Prepare a horizontal analysis. Add columns to show the amount of increase (decrease) and the percentage change. 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	20-1 Amount	Increase (Decrease)	Percent
Net sales (all on account)	$652,380	$415,280	$
Cost of goods sold	390,370	259,050
Gross profit	$262,010	$156,230	$
Administrative expenses	$63,250	$41,768	$
Selling expenses	65,883	43,889
Total operating expenses	$129,133	$85,657	$
Operating income	$132,877	$70,573	$
Interest expense	1,231	1,152
Income before income taxes	$131,646	$69,421	$
Income tax expense	30,197	13,283
Net income	$101,449	$56,138	$

Miller Electronics Corporation
Comparative Balance Sheet
December 31, 20-2 and 20-1
Assets
	20-2 Amount	20-1 Amount	Increase (Decrease)	Percent
Current assets:
Cash	$41,957	$21,609	$
Receivables (net)	73,204	47,880
Merchandise inventory	91,275	49,755
Supplies and prepayments	3,776	1,145
Total current assets	$210,212	$120,389	$
Property, plant, and equipment:
Office equipment (net)	$11,549	$8,040	$
Factory equipment (net)	105,174	70,720
Total prop., plant, and equip.	$116,723	$78,760	$
Total assets	$326,935	$199,149	$
Liabilities
Current liabilities:
Notes payable	$10,500	$6,000	$
Accounts payable	43,283	29,947
Accrued and withheld payroll taxes	6,224	5,354
Total current liabilities	$60,007	$41,301	$
Stockholders' Equity
Common stock ($10 par)	$100,000	$84,000	$
Retained earnings	166,928	73,848
Total stockholders’ equity	$266,928	$157,848	$
Total liab. and stockholders’ equity	$326,935	$199,149	$

Jun 01, 2022

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Horizontal 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...

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