Required Information Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The...

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Required Information Problem 13-2A (Static) 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 2021 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income $ 555,000 2020 $340,000 283,500 212,500 $ 278,000 153,900 271,500 127,500 124,100 102,900 46,920 50,800 50,668 29,920 22,800 153,568 76,840 73,600 117,932 50,660 50,500 40,800 10,370 15,670 $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock $ 52,390 e 100,000 $ 152,390 $ 134,424 $22,800 72,000 $ 19,960 Other paid-in capital 9,000 Retained earnings 48,590 2020 $ 37,924 500 96,000 72,000 9,000 33,464 2019 $ 51,748 3,950 60,000 $ 115,698 $ 20,300 60,000 6,000 29,398 Total liabilities and equity $ 152,390 $ 134,424 $ 115,698 Problem 13-2A (Static) Part 2 2. Complete the below table to calculate Income statement data in common-size percents. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2021 % 2020 2019 % af % Required Information Problem 13-2A (Static) 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 2021 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income $ 555,000 2020 $340,000 283,500 212,500 $ 278,000 153,900 271,500 127,500 124,100 102,900 46,920 50,800 50,668 29,920 22,800 153,568 76,840 73,600 117,932 50,660 50,500 40,800 10,370 15,670 $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock $ 52,390 e 100,000 $ 152,390 $ 134,424 $22,800 72,000 $ 19,960 Other paid-in capital 9,000 Retained earnings 48,590 2020 $ 37,924 500 96,000 72,000 9,000 33,464 2019 $ 51,748 3,950 60,000 $ 115,698 $ 20,300 60,000 6,000 29,398 Total liabilities and equity $ 152,390 $ 134,424 $ 115,698 Problem 13-2A (Static) Part 2 2. Complete the below table to calculate Income statement data in common-size percents. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2021 % 2020 2019 % af %

Answer rating: 100% (QA)

To calculate the commonsize percent for each line item on the income statement you need to express each item as a percentage of sales for the corresponding year The formula for calculating the commons... View the full answer