Problem 17-2A 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:
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 498,089 $ 381,577 $ 264,800 Cost of goods sold 299,850 239,630 169, 472 Gross profit 198,239 141,947 95,328 Selling expenses 70, 729 52,658 34,954 Administrative expenses 44,828 33,579 21,978 Total expenses 115,557 86,237 56,932 Income before taxes 82,682 55,710 38, 396 Income taxes 15,379 11,420 7,794 Net income $ 67,303 $ 44,290 $ 30, 602 2015 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 Assets Current assets $ 46,149 $ 36,106 Long-term investments 0 700 Plant assets, net 87,036 92,522 Total assets $ 133,185 $ 129,328 Liabilities and Equity Current liabilities $ 19,445 $ 19,270 Common stock 72,000 72,000 Other paid-in capital 9,000 9,000 Retained earnings 32,740 29,058 Total liabilities and equity $ 133,185 $ 129,328 $ 48,265 4,520 54,363 $ 107,148 $ 18,751 54,000 6,000 28,397 $ 107,148 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.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales 100.00 % 100.00 % 100.00% 60.20 62.80 64.00 Cost of goods sold Gross profit Selling expenses 39.80 37.20 36.00 70,729.00 Administrative expenses Total expenses 70,729.00 Income before taxes Income taxes Net income % % % 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 Assets Current assets % ad 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 Retained earnings 100.00 Total liabilities and equity ad % 100.00 %
