Question

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) $428,000 $665,000 Cost of goods sold 399,800 261,150 Gross profit $265,200 $166,850 Administrative expenses $65,941 $42,631 Selling expenses 66,616 44,337 Total operating expenses $132,557 $86,968 Operating income $132,643 $79,882 Interest expense 1,255 1,177 Income before income taxes $131,388 $78,705 Income tax expense 30,865 13,151 Net income $100,523 $65,554 Miller Electronics Corporation Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: $43,436 Cash $22,060 Receivables (net) 73,785 47,060 Merchandise inventory 90,268 50,102 Supplies and prepayments 1,105 3,780 $120,327 Total current assets $211,269 Property, plant, and equipment: Office equipment (net) $8,180 $11,789 Factory equipment (net) 104,360 70,220 $78,400 Total property, plant, and equipment $116,149 Total assets $327,418 $198,727 Liabilities Current liabilities Notes payable $10,280 $5,980 Accounts payable 43,437 29,960 Accrued and withheld payroll taxes 6,099 5,299 $59.816 $41,239 Total current liabilities Stockholders' Equity Common stock ($10 par) $100,000 $84,000 Retained earnings 167,602 73,488

Answer 1

| percent Miller Electronics Corporation Comparative Income Steitement . for the year Ended December 31, 26-2 and 20-1 2002 2001 Increase I Amount | Amount (Decrease) I Net Sales (all on acount) $665,000 $498,000 $237000 55.37 | Cost of Goods sold $399,800 261,150 $138,650 53.09 Gross profit $265,900 +166,850 98,350 58.94 Administratine Expenses *65,941 442,631 $23,310 54.67 , Selling experses 66, 616 44,337 $28,279 50.24 Total oferating Expenses $139,557 #86, 968 445,589 58.48 operating income 9132,643 $79,882 1452761 66.04 Interest expense 1,255 | 1,177 178 Income before income they + 131,388 $78,705 $ 52,683 166-93 | Income Tax expense 30,865 118,151. 1$ 17,714 1134.69 Net income $100,543 465,554 934,969 53.34 16.62

Increase (Decrease) Comparative Balance Sheet December 31, 20-2 and 2004 I Assets 20-2 120- comoyut l amount Current Assetse Cash $ 48,436 422,06021,376 96.89 Receivables (ned) . 173,785 47,066 26,725 156.78 merchandise Inventary 9o,268 50, 102 40,166 80.16 Supplies and prepayments | 3,780 1,105 2675 242.08 Total Current Assets $211,269 $120,327 gog42 75.57 Preoperty, flaut and Equipment office equipment (net) $11,789 $8,180 3609 glactory equipment (net) 104,360 70,220 | | 34, 140 148.61 Total prope Plami segulp. $ 116,149 478,400 137,799 148.14 Total Assets $327, 418 $1989 128,691 164.75 144,11

800 - Tales I Liabilities Current Liabilitiese Notes payable 210,280 $5980 4300 17.go' Alecounts Payable 143,437 129,960 13,477 44.98 Accrued and withheld preyoll 6099 5,299 15.09 Todal Current habilites $59,816 $41,239 18,577 145.04 Common Stock (teo par) 41,00,000 484,000 16,080 19.04 - Retained Earnings | 167,602 | 73,488 128.06 Total stockholder's equity $467,602 $157,488 1110,114 Total Liab. S stockholder's $327,418. $198,727 1148,691 164.75 equity