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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 clsplayed below) Selected comparative financial statements

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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 clsplayed 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 $432,442 $331,286 $229,900 Cost of goods sold 260,330 207,054 147, 136 Gross profit 172,112 124,232 82,764 Selling expenses 61, 407 45,717 30,347 Administrative expenses 38,920 29,153 19,082 Total expenses 100, 327 74,870 49,429 Income before taxes 71,785 49,362 33,335 Income taxes 13,352 10,1196,767 Net income $ 58,433 $ 39,243 $ 26,568 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 2015 Assets Current assets $ 53,448 $ 41,816 $ 55,899 Long-term investments @ 1,000 4,260 Plant assets, net 97,748 104,001 61,479 Total assets $151,196 $146,817 $121,638 Liabilities and Equity Current liabilities $ 22,075 $ 21,876 $ 21,287 Common stock 63,00 63,000 45,000 other paid-in capital 7,875 7,875 5,000 Retained earnings 58,246 54,066 50,351 Total liabilities and equity $151, 196 $146,817 $121,638 Problem 13-2A Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio I Choose Denominator: Choose Numerator: = 2017 2016 2015 Current ratio Current ratio 0 to 1 0 to 1 0 to 1 Total liabilities and equity $151,196 $146,817 $121,638 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.) 2015 KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income 15 16 of 17 Problem 13-2A Part 3 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.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2017, 2016 and 2015 2017 2016 2015 100.00% 100.00 100.00 100.00 % Assets Current assets Long-term investments Plant assets, net 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 % Prey 16 of 17 Next >

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