The condensed financial statements of Miller Company for the years 2007-2008 are presented below:
Miller Company
Comparative Balance Sheets
As of December 31, 2008 and 2007
2008 2007
Cash $ 420,000 $ 120,000
Receivables (net) 460,000 300,000
Inventories 380,000 340,000
Plant and equipment 1,700,000 1,112,000
Accumulated depreciation (260,000) (192,000)
$2,700,000 $1,680,000
Accounts payable $ 240,000 $ 160,000
Dividends payable -0- 40,000
Bonds payable 400,000 -0-
Common stock ($10 par) 1,520,000 1,200,000
Retained earnings 540,000 280,000
$2,700,000 $1,680,000
Additional data:
Market value of stock at 12/31/08 is $80 per share.
Miller sold 32,000 shares of common stock at par on July 1, 2008.
Miller
Condensed Income Statement
For the Year Ended December 31, 2008
Sales $2,400,000
Cost of goods sold 1,600,000
Gross profit 800,000
Administrative and selling expense 500,000
Net income $ 300,000
Instructions
Compute the following financial ratios by placing the proper amounts in the parentheses provided for numerators and denominators.
Click here for the solution: The condensed financial statements of Miller Company for the years 2007-2008 are presented below
