Selected comparative financial statements of Korbin Company follow.

Required

1. Compute each year’s current ratio. Round ratios to one decimal.

2. Express the income statement data in common-size percents. Round percents to two decimals.

3. Express the balance sheet data in trend percents with 2018 as base year. Round percents to two decimals. Analysis Component

4. Refer to the results from parts 1, 2, and 3. 

(a) Did cost of goods sold make up a greater portion of sales for the most recent year compared to the prior year? 

(b) Did income as a percent of sales improve in the most recent year compared to the prior year? 

(c) Did plant assets grow over this period?

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Ratios, common-size statements, and trend percents P1 P2 P3 KORBIN COMPANY Comparative Balance Sheets At December 31 2020 2019 2018 KORBIN COMPANY Comparative Income Statements Assets 2020 2019 Current assets.. $ 52,390 $ 37,924 $ 51,748 For Years Ended December 31 2018 Long-term investments.. 500 3,950 Sales . $555,000 $340,000 $278,000 Plant assets, net.. 100,000 96,000 60,000 Cost of goods sold 283,500 212,500 153,900 Total assets.. $152,390 $134,424 $115,698 Gross profit.. 271,500 127,500 124,100 Selling expenses. 102,900 46,920 50,800 Llabilitles and Equity Administrative expenses 50,668 29,920 22,800 $ 22,800 $ 19,960 $ 20,300 Current liabilities.... Total expenses 153,568 76,840 73,600 Common stock .. 72,000 72,000 60,000 Income before taxes.. 117,932 50,660 50,500 Other paid-in capital.. 9,000 9,000 6,000 Retained earnings... Total liabilities and equity.... Income tax expense 40,800 10,370 15,670 48,590 33,464 29,398 Net income.. $ 77,132 $ 40,290 $ 34,830 $152,390 $134,424 $115,698