Required information 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 2017 Sales $ 454,450 $ 348,146 $ 241,600 Cost of goods sold 273,579 219, 332 154,624 Gross profit 189,871 128,814 86,976 Selling expenses 64,532 48,044 31,891 Administrative expenses 40,901 30,637 20,53 Total expenses 105,433 78,681 51,944 Income before taxes 75,438 50,133 35,032 Income tax expense 14,031 10,277 7,111 Net income $ 61,407 $ 39,856 $ 27,921 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 59,330 $ 39,709 $ 53,082 Long-term investments 600 4,420 Plant assets, net 110,183 100,504 59,162 Total assets $ 169,513 $ 140,813 $ 116,664 Liabilities and Equity Current liabilities $ 24,749 $ 20,981 $ 20,416 Common stock 70,000 70,000 52,000 Other paid in capital 8,750 8,750 5,778 Retained earnings 66,014 41,082 38,470 Total liabilities and equity $ 169,513 $ 140,813 $ 116,664 Problem 13-2A Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Choose Denominator: Choose Numerator: 7 Current ratio Current ratio 11 1 7 to 1 2019 2018 2017 / to 1 1 11 to 1 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.) KORBIN COMPANY Common Size Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 % % Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net Income 9 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 % % 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 2 % 100.00% 100 00 100.00 100.00 100.00 % % %