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Problem 13-2A Ratios, common-size statements, and trend percents LO P1, P2, P3
[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow:
| KORBIN COMPANY |
| Comparative Income Statements |
| For Years Ended December 31, 2017, 2016, and 2015 |
| | 2017 | 2016 | 2015 |
| Sales | $ | 480,407 | | $ | 368,031 | | $ | 255,400 | |
| Cost of goods sold | | 289,205 | | | 232,596 | | | 163,456 | |
| Gross profit | | 191,202 | | | 135,435 | | | 91,944 | |
| Selling expenses | | 68,218 | | | 50,788 | | | 33,713 | |
| Administrative expenses | | 43,237 | | | 32,387 | | | 21,198 | |
| Total expenses | | 111,455 | | | 83,175 | | | 54,911 | |
| Income before taxes | | 79,747 | | | 52,260 | | | 37,033 | |
| Income taxes | | 14,833 | | | 10,713 | | | 7,518 | |
| Net income | $ | 64,914 | | $ | 41,547 | | $ | 29,515 | |
| |
| KORBIN COMPANY |
| Comparative Balance Sheets |
| December 31, 2017, 2016, and 2015 |
| | 2017 | 2016 | 2015 |
| Assets | | | | | | | | | |
| Current assets | $ | 50,804 | | $ | 39,748 | | $ | 53,134 | |
| Long-term investments | | 0 | | | 700 | | | 3,180 | |
| Plant assets, net | | 92,913 | | | 99,107 | | | 59,307 | |
| Total assets | $ | 143,717 | | $ | 139,555 | | $ | 115,621 | |
| Liabilities and Equity | | | | | | | | | |
| Current liabilities | $ | 20,983 | | $ | 20,794 | | $ | 20,234 | |
| Common stock | | 65,000 | | | 65,000 | | | 47,000 | |
| Other paid-in capital | | 8,125 | | | 8,125 | | | 5,222 | |
| Retained earnings | | 49,609 | | | 45,636 | | | 43,165 | |
| Total liabilities and equity | $ | 143,717 | | $ | 139,555 | | $ | 115,621 | |
| |
Problem 13-2A Part 2
2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)
Answer & Explanation
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