Ratio 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
	20-2		20-1
Assets
Current assets:
Cash		$42,900		$22,006
Receivables (net)		73,642		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 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:

Calculate the following ratios and amounts for 20-1 and 20-2. Round all calculations to two decimal places. Use 365 days when computing the accounts receivable and merchandise inventory turnover.

(a)	Return on assets (Total assets on January 1, 20-1, were $175,750.)
(b)	Return on common stockholders' equity (Total common stockholders' equity on January 1, 20-1, was $106,944.)
(c)	Earnings per share of common stock (The average numbers of shares outstanding were 8,400 shares in 20-1 and 9,200 in 20-2.)
(d)	Book value per share of common stock
(e)	Quick ratio
(f)	Current ratio
(g)	Working capital
(h)	Receivables turnover (Net receivables on January 1, 20-1, were $39,800.)
(i)	Merchandise inventory turnover (Merchandise inventory on January 1, 20-1, was $48,970.)
(j)	Debt-to-equity ratio
(k)	Asset turnover (Assets on January 1, 20-1, were $175,750.)
(l)	Times interest earned ratio
(m)	Profit margin ratio
(n)	Assets-to-equity ratio
(o)	Price-earnings ratio (The market price of the common stock was $100.00 and $85.00 on December 31, 20-2 and 20-1, respectively.)