1 Required information Problem 17-2A 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 of 4 Book KORBIN COMPANY Comparative Income Statements For Yoare Ended December 31, 2019, 2018, and 2017 2019 2018 2012 Sales $ 561,667 $430,283 $ 298,600 cost of goods sold 338,124 268,927 191, 104 Grons profit 223,543 161,356 107,496 Selling expenses 79,757 59,379 39.415 Administrative expenses 50,550 37.865 24,784 Total expenses 130, 307 97244 647199 Income before taxes 93,236 64,112 43,297 Income tax expense 17.342 13, 143 8.789 Net income $ 75,894 $ 50,969 $ 34,508 rences KORBIN COMPANY Comparative Balance sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 59,530 $ 39,844 $ 53,262 Long-term investments 600 4,740 Plant assets, not 114,028 103,239 61446 Total assets $173,556 $ 144, 174 $ 119,448 Liabilities and Equity Current liabilities $ 25,339 $ 21,482 $ 20,903 Common stock 71,000 21.000 53,000 Other paid in capital 8,875 8,875 5,889 Retained earnings 68,344 42,817 39,656 Total liabilities and equity $ 173,558 $144,174 $ 119,448 Problem 17-2A Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Choose Numerator: Current Ratio Choose Denominator: 1 / Current ratio Current ratio to 1 to 1 2019 2018 2017 1 = 1 to 1 119,498 Problem 17-2A Part 2 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) 2017 % KORBIN COMPANY Common-Site Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 Sales % % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense % % Net income % Problem 17-2A Part 3 4 3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2019, 2018 and 2017 2019 2018 2017 Assets % % 100.00 % 100.00 100.00 100,00 % Current assets Long-term investments Plant assets, not Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity % % 100,00 % 100.00 100.00 100.00 100.00% Problem 17-2A Part 4 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? O Yes O No (b) Did income as a percent of sales improve in the most recent year? O Yes O No (c) Did plant assets grow over this period? Yes O No Help Required: Compute the following: (1) current ratio. (2) acid-test ratio. (3) days' sales uncollected. (4) inventory turnover, (5) days' sales in inventory (6) debt-to-equity ratio, (7) times interest earned. (8) profit margin ratio, (9) total asset turnover (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req 7 Req8 Reg 9 Req 10 Reg 11 Compute the current ratio and acid-test ratio. Current Ratio Choose Denominator: Choose Numerator: Current Ratio Current ratio 1 / to 1 Acid-Test Ratio Choose Denominator: Choose Numerator: 1 / Acid-Test Ratio Acid-Test Ratio to 1 Reg 1 and Req3 > Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncollected.(4) inventory turnover (5) days sales in inventory (6) debt-to-equity ratio, 7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (m) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Reg 5 Reg 6 Req7 Reg 8 Reg9 Reg 10 Reg 13 Compute the days' sales uncollected (3) Choose Numerator: Days! Sales Uncollected 1 Choose Denominator: Days 1 Days Sabes Uncollected - Days sales uncollected days Total liabilities and equity $ 259,200 ints Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected. (4) Inventory turnover. (5) days' sales in inventory (6) debt-to-equity ratio. times interest earned, (8) profit margin ratio. (9) total asset turnover (10) return on total assets, and (11) return on common stockholders' equity (Do not round Intermediate calculations.) Book Complete this question by entering your answers in the tabs below. Print Reg 4 Reqs Req6 Req 7 Reg 8 Re2 9 Reg 10 Req 11 Feferences Req 1 and 2 Req3 Compute the inventory turnover. Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover = Inventory turnover times Help Save METODOLO lnventory Prepaid expenses plant assets, bet Total assets Check my work 2.30 ter note paaie. Secres by mortgage os plantas 2.750 Canon stock 153,300 Betained earning $ 259,200 Total abilities and quity 2.100 259,100 Required: Compute the following: (1) current ratio (2) aclotest ratio (3) days sales uncollected, (4) Inventory turnover (5) days' sales in inventory (6) debt-to-equity ratio. times interest earned. (8) profit margin ratio (9) totale turnovec (10) return on total assets, and return on common stockholders' equity (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Regs Req Req? Reg Regg R 10 Rea 1 and 2 Req3 Requ Compute the days' sales in inventory (5) Choose Numerator Days Balesia Inventory Choose Denominator Days - Day Sales Inmory Day les intry 1 x Required: Compute the following: (1) current ratio, (2) acid-test ratio. (3) days' sales uncoilected, (4) inventory turnover, (5) days soles in inventory (6) debt-to-equity ratio (7) times interest earned. (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (1) return on common stockholders' equity. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req4 Reqs Reg 6 Reg 2 Req8 Reg 9 Reg 10 5 Reg 11 Compute the debt-to-equity ratio. (6) Choose Numerator: Debt-to-Equity Ratio Choose Denominator 1 1 Debt-to-Equity Ratio Debt-to-equity ratio to 1 ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover. (5) days' sales in inventory (6) debt-to-equity ratio, (7) times interest earned. (8) profit margin ratio (9) total asset turnover (10) return on total assets, and (1) return on common stockholders' equity. (Do not round intermediate calculations.) Ook Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 5 Reg 6 Re7 Req8 Reg 9 Reg 10 Reg 11 Req Compute the times interest eamed rences Times Interest Earred Choose Denominator Choose Numerator: Times Interes Earned Times interest Barned times on common stockholders eq Complete this question by entering your answers in the tabs below. Reg 10 Reg 11 Reg 8 Reg 9 Reg 1 and 2 Reg 3 Reg 4 Reg 5 Reg 7 Reg 6 Compute the profit margin ratio. (8) Profit Margin Ratio Choose Denominator: Choose Numerator: Profit margin ratio Profit margin ratio % 1 Complete this question by entering your answers in the tabs below. Reg 11 Reg 9 Reg 10 Reg 7 Req 8 Reg 6 Reg 4 Reg 1 and 2 Req3 Reg 5 Compute the total asset turnover. (9) Total Asset Turnover Choose Denominator: 1 Choose Numerator: Total Asset Turnover Total asset turnover 1 times 1 Reg 10 > points Required: Compute the following: (1) current ratio. (2) acid-test ratio, 3) days' sales uncollected, (4) inventory turnover. (5) days sales in inventory (6) debt-to-equity ratio, 7) times interest earned, () profit margin ratio (9) total asset turnover, (o) return on tot assets, and (1) return on common stockholders' equity (Do not round intermediate calculations.) Boot Complete this question by entering your answers in the tabs below. Print Rea? Rea Reg Reg 10 Red 11 Haterences Reg 1 and 2 Reg 3 Reg 4 Regs Reg 6 Compute the return on common stockholders' culty (11) Choose Numerator: Return on Commen Stockholders' County Choose Dennnnaar Return On Common Stockholders' Equity Return on common stockholy