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Financial statement analysis involves all of the following except Multiple Choice 1.25 points Helping users to make better decisions O Transforming accounting data into useful

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Financial statement analysis involves all of the following except Multiple Choice 1.25 points Helping users to make better decisions O Transforming accounting data into useful information for decision-making O Assuring that the company will be more profitable in the future Helping to reduce uncertainty in decision-making O The application of analytical tools to general-purpose financial statements and related data for making business decisions Current assets minus current liabilities is: Multiple Choice 125 points O Profit margin. E 0 Financial leverage. 0 C ) Current ratio. 0 O Quick assets 0 O Working capital 0 The building blocks of financial statement analysis do not include: Multiple Choice External analyst Liquidity and efficiency. Solvency Market prospects Required Information [The following information applies to the questions displayed below) Selected comparative financial statements of Korbin Company follow. Part 1 of 3 1.25 points 2016 Sales KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 $ 421,908 $ 323,216 Cost of goods sold 253,989 205, 242 Gross profit 167,919 117,974 Selling expenses 59,911 44,604 Administrative expenses 37.972 28.443 Total expenses 92.883 73,847 Income before taxes 78,36 44,927 Income taxes 23, 827 9,210 Net income $ 35,717 2015 $ 224, 30e 143,552 Be, 748 29,688 32,523 $ 25.92 KORBIN COMPANY Corparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 2015 Assets Current assets $ 54,359 542,529 556,852 Long-ters investments 1.000 4,170 Plant assets, net 100,953 103,284 53,927 Total assets $ 155,312 5 15e,13 $ 124,949 Liabilities and Equity Current liabilities $ 22,675 $ 22.621 5 21,866 Common stock 66.000 55.00 4.ee Other paid-in capital 8,250 3.25 5.333 Retained earnings 58.385 49,75 Total liabilities and equity $ 155.312 $ 150,33 $ 124,949 Required: 1. Complete the below table to calculate each year's current ratio, Choose Numerator: Current Ratio Choose Denominator: Current ratio 2017 2016 2015 LUB WEB Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net Income 167,919 59,911 37,972 97,883 70,036 13,027 57.009 117.974 44,684 28.43 73,847 44,927 9.21 35,717 88,748 29,608 18,617 43.225 32.523 6,682 25,921 $ $ $ KORDIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 Assets Current assets $ 54,359 Long-ters Investments Plant assets, net 100,953 Total assets $ 155, 312 Liabilities and Equity Current liabilities $ 22,676 Connon stock 66,00 Other paid.in capital Retained earnings Total liabilities and equity $ 155,312 5 42,529 1.0 17,284 $ 150,13 $ 56,852 4 .17 63.927 $ 124,949 $ $ 22,471 6,00 8,250 21,866 48, 5.333 49.75 $ 150,13 S124.99 2. Complete the below table to calculate income statement data in common-size percent. (Round your percentage answers to 2 decimal places.) KORDIN COMPANY Common.Size Comparative Income Statements For Years Ended December 31, 2017, 2016 and 2015 2017 2016 2015 Cost of goods sold Gross profit Salting expenses Administrative expenses 97,583 Total expenses Income before taxes Income taxes 70.36 13, e27 57, ee9 73,047 44,927 9,210 $ 35,717 48,225 32,523 6,602 $25,921 Net income $ Part 3 of 3 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2015 25 points $ 54,359 $ 42,529 0 1. 100,953 107,284 $155.32 $150.813 $ 56,852 4 .12 63.927 12449 Current assets Long-term investments plant assets, net Total assets abilities and Equity Current liabilities Common stock Other paid in capital Retained earnings Total liabilities and equity $ 21.866 .00 $ 22,676 56,eee 3.25e _58386 $ 155, 312 $ 22.471 56,000 3.25e 54,092 $150,813 5.333 49.750 S 124,949 3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. (Round your percentage answers to 2 decimal places.) KORDIN COMPANY Balance Sheet Data in Trend Percents December 31, 2017, 2016 and 2015 Assets Cumont 100 DO Long-term investments 10000 100 00 Plant assetsret Total assets 10000 Liabilities and Equity Current l es 100.00 10000 100.00 Refer to the following selected financial Information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2 (Use 365 days a y Merchandise inventory Cost of goods sold Year 2 Year 1 279,000 261,500 478,480 425,100 Help Save Powers Company reported Net sales of $1290,000 and average Accounts Receivable, net of $69,500. The accounts receivable turnover ratios 31

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