[The following information applies to the questions displayed below.] Selected c
ID: 2466121 • Letter: #
Question
[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, 2015, 2014, and 2013 2015 2014 2013 Sales $ 377,329 $ 289,065 $ 200,600 Cost of goods sold 227,152 183,267 128,384 Gross profit 150,177 105,798 72,216 Selling expenses 53,581 39,891 26,479 Administrative expenses 33,960 25,438 16,650 Total expenses 87,541 65,329 43,129 Income before taxes 62,636 40,469 29,087 Income taxes 11,650 8,296 5,905 Net income $ 50,986 $ 32,173 $ 23,182 KORBIN COMPANY Comparative Balance Sheets December 31, 2015, 2014, and 2013 2015 2014 2013 Assets Current assets $ 49,486 $ 38,717 $ 51,755 Long-term investments 0 400 3,810 Plant assets, net 90,502 96,817 57,056 Total assets $ 139,988 $ 135,934 $ 112,621 Liabilities and Equity Current liabilities $ 20,438 $ 20,254 $ 19,709 Common stock 68,000 68,000 50,000 Other paid-in capital 8,500 8,500 5,556 Retained earnings 43,050 39,180 37,356 Total liabilities and equity $ 139,988 $ 135,934 $ 112,621
2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)
3. Complete the below table to calculate the balance sheet data in trend percents with 2013 as the base year. (Round your percentage answers to 2 decimal places.)
Explanation / Answer
Solution :
%
Comparative Income Statements
2,015
2,014
2,013
2,015
2,014
2,013
Sales
377,329
289,065
200,600
100.00
100.00
100.00
Cost of goods sold
227,152
183,267
128,384
60.20**
63.40
64.00
Gross Profit
150,177
105,798
72,216
39.80
36.60
36.00
Selling expenses
53,581
39,891
26,479
14.20
13.80
13.20
Administrative expenses
33,960
25,438
16,650
9.00
8.80
8.30
Total expenses
87,541
65,329
43,129
23.20
22.60
21.50
Income before taxes
62,636
40,469
29,087
16.60
14.00
14.50
Income taxes
11,650
8,296
5,905
3.09
2.87
2.94
Net income
50,986
32,173
23,182
13.51
11.13
11.56
Percentage are calculated taking sales as base (i.e sales are 100%).
**For e.g COGS %for 2015 =227152*100/377329 =60.20%
%
Comparative Balance Sheets
2015
2014
2013
2015
2014
2013
Assets
Current assets
49486
38717
51755
95.62***
74.81
100.00
Long-term investments
0
400
3810
-
10.50
100.00
Plant assets, net
90502
96817
57056
158.62
169.69
100.00
Total assets
139988
135934
112621
124.30
120.70
100.00
Liabilities and Equity
Current liabilities
20438
20254
19709
103.70
102.77
100.00
Common stock
68000
68000
50000
136.00
136.00
100.00
Other paid-in capital
8500
8500
5556
152.99
152.99
100.00
Retained earnings
43050
39180
37356
115.24
104.88
100.00
Total liabilities and equity
139988
135934
112621
124.30
120.70
100.00
***Trend has been calculated taking 2013 as a base
For e.g % current asset for 2015=49484*100/51755=95.62%
%
Comparative Income Statements
2,015
2,014
2,013
2,015
2,014
2,013
Sales
377,329
289,065
200,600
100.00
100.00
100.00
Cost of goods sold
227,152
183,267
128,384
60.20**
63.40
64.00
Gross Profit
150,177
105,798
72,216
39.80
36.60
36.00
Selling expenses
53,581
39,891
26,479
14.20
13.80
13.20
Administrative expenses
33,960
25,438
16,650
9.00
8.80
8.30
Total expenses
87,541
65,329
43,129
23.20
22.60
21.50
Income before taxes
62,636
40,469
29,087
16.60
14.00
14.50
Income taxes
11,650
8,296
5,905
3.09
2.87
2.94
Net income
50,986
32,173
23,182
13.51
11.13
11.56
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