Problem 13-2A Ratios, common-size statements, and trend percents LO P1, P2, P3
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[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow.
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, 2019, 2018, and 2017 2019 2018 Sales $ 512,573 $ 392,673 Cost of goods sold 308.569 248,955 Gross profit 204,004 143,718 Selling expenses 72,785 54,189 Administrative expenses 46,132 34,555 Total expenses 118,917 88,744 Income before taxes 85,087 54,974 Income tax expense 15,826 11,270 Net income $ 69,261 $ 43,704 2017 $ 272,500 174,400 98,100 35,970 22,618 58,588 39,512 8,021 $ 31,491 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 $ 58,412 0 108,480 $ 166,892 $ 39,095 1,000 98,541 $ 138,636 $ 52,261 3,030 59,569 $ 114,860 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 $ 20,101 54,000 $ 24,366 72,000 9,000 61,526 $ 166,892 $ 20,657 72.000 9,000 36,979 $ 138,636 6,000 34,759 $ 114,860 Required: 1. Complete the below table to calculate each year's current ratio. Answer is complete and correct. Current Ratio Choose Numerator: / Choose Denominator: = Current ratio Current assets / Current liabilities II Current ratio 2019 $ 58,412 / $ 2.4 to 1 = = 2018 $ 39,095 / 24,366 20,657 20,101 $ 1.9 to 1 2017 $ 52,261 $ II 2.6 to 1 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales 100.001% % % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income % % % 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 Current assets % % 100.00 % Long-term investments 100.00 Plant assets, net 100.00 Total assets % % 100.00 % Liabilities and Equity Current liabilities % 100.00 % Common stock 100.00 Other paid-in capital 100.00 100.00 Retained earnings Total liabilities and equity % % 100.00 %
