Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, 2020, 2019, and 2018 2020 2019 2018 Sales $555,000 $340,000 $278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 102,900 46,920 50,800 Administrative expenses 50,668 29,920 22,800 Total expenses 153,568 76,840 73,600 Income before taxes 117,932 50,660 50,500 Income tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 2018 KORBIN COMPANY Comparative Balance Sheets December 31, 2020, 2019, and 2018 2020 2019 Assets Current assets $ 52,390 $ 37,924 Long-term investments 0 500 Plant assets, net 100,000 96,000 Total assets $152,390 $134,424 Liabilities and Equity Current liabilities $ 22,800 $ 19,960 Common stock 72,000 72,000 Other paid-in capital 9,000 9,000 Retained earnings 48,590 33,464 Total liabilities and equity $152,390 $134,424 $ 51,748 3,950 60,000 $115, 698 $ 20,300 60,000 6,000 29, 398 $115,698 Problem 13-2A (Static) Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Choose Denominator: Choose Numerator: 1 Current ratio II Current ratio 2020 / to 1 = = to 1 2019 2018 11 1 to 1 Problem 13-2A (Static) Part 2 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) 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 % % Problem 13-2A (Static) Part 3 3. Complete the below table to calculate the balance sheet data in trend percents with 2018 as base year (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2020, 2019 and 2018 2020 2019 2018 % % Assets Current assets Long-term investments Plant assets, net Total assets 100.00 % 100.00 100.00 % % 100.00 % % % 100.00% Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 100.00 100.00 100.00 100.001 % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit Leadership Elevating The Internal Audit Function To Accelerate Value

Authors: Patricia Kaim

1st Edition

1032557168, 978-1032557168

More Books

Students also viewed these Accounting questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define organisational structure

Answered: 1 week ago

Question

Define line and staff authority

Answered: 1 week ago

Question

Define the process of communication

Answered: 1 week ago

Question

Explain the importance of effective communication

Answered: 1 week ago