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 $528,561 $ 404,921 $281,000 Cost of goods sold 318,194 254, 290 179,840 Gross profit 210,367 150,631 101,160 Selling expenses 75,056 55,879 37,092 Administrative expenses 47,570 35,633 23,323 Total expenses 122,626 91,512 60, 415 Income before taxes 87,741 59, 119 40, 745 Income tax expense 16,320 12,119 8,271 Net income $ 71,421 $ 47,000 $ 32,474 2017 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 Assets Current assets $ 55,303 $ 37,015 Long-term investments 0 600 Plant assets. net 102,706 93,643 $ 49, 480 4,180 55,087 $ 158,009 $131,258 $ 108,747 Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 23,069 $ 19,557 $ 19,031 70,000 70,000 52,000 8,750 8,750 5,778 56,190 32,951 31,938 $ 158,009 $131,258 $ 108, 747 Problem 13-2A Part 1 Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Choose Denominator: Choose Numerator: Current ratio Current ratio 1 to 1 2019 2018 to 1 2017 to 1 Problem 13-2A Part 2 2. Complete the below table to calculate income statement data in common-size percents. (Round decimal places.) 2017 % KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 Sales % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense % % % Net income Problem 13-2A Part 3 3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Rou 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 % 100.00 Long-term investments Plant assets, net Total assets Liabilities and Equity 100.00 100.00 % % % Current liabilities % % 100.00 % Common stock 100.00 Other paid-in capital 100.00 Retained earnings 100.00 Problem 13-2A Part 4 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 No (c) Did plant assets grow over this period