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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
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 $ 467,052 $ 357,800 $ 248,300 Cost of goods sold 281,165 223,625 158,912 Gross profit 185,887 134,175 89,388 Selling expenses 66,321 49,376 32,776 Administrative expenses 42,035 31,486 20,609 Total expenses 108,356 80,862 53,385 Income before taxes 77,531 53,313 36,003 Income tax expense 14,421 10,929 7,309 Net income $ 63,110 $ 42,384 $ 28,694 2017 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 Assets Current assets $ 60,066 $ 40,202 Long-term investments 0 1,100 Plant assets, net 109,852 99,848 Total assets $ 169,918 $ 141,150 Liabilities and Equity Current liabilities $ 24,808 $ 21,031 Common stock 64,000 64,000 Other paid-in capital 8,000 8,000 Retained earnings 73,110 48,119 Total liabilities and equity $ 169,918 $ 141,150 $ 53,741 3,830 59,372 $ 116,943 $ 20,465 46,000 5,111 45,367 $ 116,943 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Choose Numerator: 1 Choose Denominator: Current ratio Current assets = Current ratio 2.4 to 1 2019 1 $ $ Current liabilities $ $ 60,066 40,202 24,808 21,031 2018 / II 1.9 to 1 2017 53,741 / $ 20,465 = 2.6 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, 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 % % % 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 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 100.00 100.00 Other paid-in capital Retained earnings 100.00 Total liabilities and equity % % 100.00 % 4. Refer to the results from parts 1, 2, and 3. (a) Did cost of goods sold make up a greater portion of sales for the most recent year? Yes O No (b) Did income as a percent of sales improve in the most recent year? Yes (c) Did plant assets grow over this period? Yes O No
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