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: KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 490,941 $ 376, 101 $ 261,000 Cost of goods sold 295,546 236, 191 167,040 Gross profit 195,395 139,910 93,960 Selling expenses 69,714 51,902 34,452 Administrative expenses 44,185 33,097 21,663 Total expenses 113,899 84,999 56,115 Income before taxes 81,496 54,911 37,845 Income taxes 15, 158 11,257 7,683 Net income $ 66,338 $ 43,654 $ 30,162 2015 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 Assets Current assets $ 50,901 $ 39,824 Long-term investments 0 1,200 Plant assets, net 94,530 100,195 Total assets $ 145, 431 $ 141,219 Liabilities and Equity Current liabilities $ 21,233 $ 21,042 Common stock 68,000 68,000 Other paid-in capital 8,500 8,500 Retained earnings 47,698 43,677 Total liabilities and equity $ 145, 431 $ 141,219 $ 53,235 3,200 60,565 $ 117,000 $ 20,475 50,000 5,556 40,969 $ 117,000 Problem 17-2A Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio I Choose Denominator: Choose Numerator: = / = Current ratio Current ratio to 1 to 1 2017 / = 2016 = = 2015 / = 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, 2017, 2016, and 2015 2017 2016 2015 Sales % % % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses 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 % % 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 % 100.00 %