Search the web.. To Do ListD View Unofficial Trans Jacint Connect Connect a Secu
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Search the web.. To Do ListD View Unofficial Trans Jacint Connect Connect a Secure https://newconnect.mheducation.com/flow/connect.html Tab D TO Do List ? View Unofficial Tran: Homework 6 Connect - To Do Ass Required Information Problem 13-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 IThe 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, 2e17, 2816, and 2815 2827 2816 2e15 s543,797 416,593 289,180 sales Cost of goods sold Gross profit selling expenses Administrative expenses Total expenses Incore before taxes. Incone taxes 16.431 152,59e 57,49e 327.366 263.783185-824 152, 89e184,876 49838,161 7,219 48.942 90,278 58 748 41.920 $ 73 48e s 46,698 33 418 Net income OORBLN COMPANY comparatáve Balance Sheets Decenber 31, 2817, 2816, and 2615 Pre 2 3of rchExplanation / Answer
KORBIN COMPANY
Common size analysis
2015
2016
2017
Sales
$ 289,100.00
100.00%
$ 416,593.00
100.00%
$ 543,797.00
100.00%
Cost of Goods Sold
$ 185,024.00
64.00%
$ 263,703.00
63.30%
$ 327,366.00
60.20%
Gross Profit
$ 104,076.00
36.00%
$ 152,890.00
36.70%
$ 216,431.00
39.80%
Selling Expenses
$ 38,161.00
13.20%
$ 57,490.00
13.80%
$ 77,219.00
14.20%
Administrative Expenses
$ 23,995.00
8.30%
$ 36,660.00
8.80%
$ 48,942.00
9.00%
Total Expenses
$ 62,156.00
21.50%
$ 94,150.00
22.60%
$ 126,161.00
23.20%
Income before taxes
$ 41,920.00
14.50%
$ 58,740.00
14.10%
$ 90,270.00
16.60%
Income Taxes
$ 8,510.00
2.94%
$ 12,042.00
2.89%
$ 16,790.00
3.09%
Net Income
$ 33,410.00
11.56%
$ 46,698.00
11.21%
$ 73,480.00
13.51%
The Above Table shows that Cost of Goods sold has decreased over the years. Selling and Administrative expenses have increased over the years.
KORBIN COMPANY
Trends Percents Analysis
2015
2016
2017
Sales
$ 289,100.00
100.00%
$ 416,593.00
144.10%
$ 543,797.00
130.53%
Cost of Goods Sold
$ 185,024.00
100.00%
$ 263,703.00
142.52%
$ 327,366.00
124.14%
Gross Profit
$ 104,076.00
100.00%
$ 152,890.00
146.90%
$ 216,431.00
141.56%
Selling Expenses
$ 38,161.00
100.00%
$ 57,490.00
150.65%
$ 77,219.00
134.32%
Administrative Expenses
$ 23,995.00
100.00%
$ 36,660.00
152.78%
$ 48,942.00
133.50%
Total Expenses
$ 62,156.00
100.00%
$ 94,150.00
151.47%
$ 126,161.00
134.00%
Income before taxes
$ 41,920.00
100.00%
$ 58,740.00
140.12%
$ 90,270.00
153.68%
Income Taxes
$ 8,510.00
100.00%
$ 12,042.00
141.50%
$ 16,790.00
139.43%
Net Income
$ 33,410.00
100.00%
$ 46,698.00
139.77%
$ 73,480.00
157.35%
The Above trend shows that Companies Overall Income is Increased due to increase in Sales revenue.
KORBIN COMPANY
Common size analysis
2015
2016
2017
Sales
$ 289,100.00
100.00%
$ 416,593.00
100.00%
$ 543,797.00
100.00%
Cost of Goods Sold
$ 185,024.00
64.00%
$ 263,703.00
63.30%
$ 327,366.00
60.20%
Gross Profit
$ 104,076.00
36.00%
$ 152,890.00
36.70%
$ 216,431.00
39.80%
Selling Expenses
$ 38,161.00
13.20%
$ 57,490.00
13.80%
$ 77,219.00
14.20%
Administrative Expenses
$ 23,995.00
8.30%
$ 36,660.00
8.80%
$ 48,942.00
9.00%
Total Expenses
$ 62,156.00
21.50%
$ 94,150.00
22.60%
$ 126,161.00
23.20%
Income before taxes
$ 41,920.00
14.50%
$ 58,740.00
14.10%
$ 90,270.00
16.60%
Income Taxes
$ 8,510.00
2.94%
$ 12,042.00
2.89%
$ 16,790.00
3.09%
Net Income
$ 33,410.00
11.56%
$ 46,698.00
11.21%
$ 73,480.00
13.51%
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