problem 3

Required information Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, [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, 2020, 2019, and 2018 2020 2019 2018 Sales $ 416,830 $ 319, 326 $ 221,600 Cost of goods sold 250,932 199,898 141,824 Gross profit 165,898 119,428 79,776 Selling expenses 59,190 44,067 29,251 Administrative expenses 37,515 28, 101 18,393 Total expenses 96,705 72,168 47,644 Income before taxes 69,193 47,260 32,132 Income tax expense 12,870 9,688 6,523 Net income $ 56,323 $ 37,572 $ 25,609 KORBIN COMPANY Comparative Balance Sheets December 31, 2020, 2019, and 2018 2020 2019 2018 Assets Current assets $ 61,599 $ 41,168 $ 55,032 Long-term investments 600 4,980 Plant assets, net 114,230 184,217 60,937 Total assets $ 175,739 $ 145,985 $ 120,949 Liabilities and Equity Current liabilities $ 25,658 $ 21,752 $ 21,166 Common stock 64,000 64,000 46,000 Other paid-in capital 8,000 8,000 5,111 Retained earnings 78,081 52,233 48,672 Total liabilities and equity $ 175,739 $ 145,985 $ 120,949 2. Complete the below table to calculate income statement data in common-size percents (Round your percentage answers to 2 decimal places.) Chi 2018 KORBIN COMPANY Common Size Comparative Income Statements For Years Ended December 31, 2020, 2019, and 2018 2020 2019 Sales % % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense % Net income