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KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2015,

ID: 2469637 • Letter: K

Question

KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2015, 2014, and 2013 2015 2014 2013 Sales $ 556,588 $ 426,392 $ 295,900 Cost of goods sold 335,066 268,627 189,376 Gross profit 221,522 157,765 106,524 Selling expenses 79,035 58,842 39,059 Administrative expenses 50,093 37,522 24,560 Total expenses 129,128 96,364 63,619 Income before taxes 92,394 61,401 42,905 Income taxes 17,185 12,587 8,710 Net income $ 75,209 $ 48,814 $ 34,195 KORBIN COMPANY Comparative Balance Sheets December 31, 2015, 2014, and 2013 2015 2014 2013 Assets Current assets $ 49,545 $ 38,763 $ 51,817 Long-term investments 0 1,000 4,960 Plant assets, net 94,902 100,500 59,431 Total assets $ 144,447 $ 140,263 $ 116,208 Liabilities and Equity Current liabilities $ 21,089 $ 20,899 $ 20,336 Common stock 72,000 72,000 54,000 Other paid-in capital 9,000 9,000 6,000 Retained earnings 42,358 38,364 35,872 Total liabilities and equity $ 144,447 $ 140,263 $ 116,208 KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2015, 2014, and 2013 2015 2014 2013 Sales $ 556,588 $ 426,392 $ 295,900 Cost of goods sold 335,066 268,627 189,376 Gross profit 221,522 157,765 106,524 Selling expenses 79,035 58,842 39,059 Administrative expenses 50,093 37,522 24,560 Total expenses 129,128 96,364 63,619 Income before taxes 92,394 61,401 42,905 Income taxes 17,185 12,587 8,710 Net income $ 75,209 $ 48,814 $ 34,195 KORBIN COMPANY Comparative Balance Sheets December 31, 2015, 2014, and 2013 2015 2014 2013 Assets Current assets $ 49,545 $ 38,763 $ 51,817 Long-term investments 0 1,000 4,960 Plant assets, net 94,902 100,500 59,431 Total assets $ 144,447 $ 140,263 $ 116,208 Liabilities and Equity Current liabilities $ 21,089 $ 20,899 $ 20,336 Common stock 72,000 72,000 54,000 Other paid-in capital 9,000 9,000 6,000 Retained earnings 42,358 38,364 35,872 Total liabilities and equity $ 144,447 $ 140,263 $ 116,208

2.

Complete the below table to calculate income statement data in common-size percents.

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.)

Complete the below table to calculate income statement data in common-size percents.

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

Income Statement 2015 2014 2013 Common Size % Common Size % Common Size % Sales               556,588 100.00          426,392 100.00          295,900 100.00 Cost of Goods Sold               335,066 60.20          268,627 63.00          189,376 64.00 Gross Profit               221,522 39.80          157,765 37.00          106,524 36.00 Selling Expenses                 79,035 14.20            58,842 13.80            39,059 13.20 Administrative Expenses                 50,093 9.00            37,522 8.80            24,560 8.30 Total Expenses               129,128 23.20            96,364 22.60            63,619 21.50 Income before Tax                 92,394 16.60            61,401 14.40            42,905 14.50 Income Tax                 17,185 3.09            12,587 2.95              8,710 2.94 Net Income                 75,209 13.51            48,814 11.45            34,195 11.56 Balance Sheet 2015 2014 2013 Assets Common Size % Common Size % Common Size % Current Assets                 49,545          (4.38)            38,763      (25.19)            51,817      100.00 Long Term Investment                          -       (100.00)              1,000      (79.84)              4,960      100.00 Plant Assets net                 94,902          59.68          100,500         69.10            59,431      100.00 Total Assets               144,447          24.30          140,263         20.70          116,208      100.00 Liabilities & Equity Current Liabilities                 21,089            3.70            20,899           2.77            20,336      100.00 Common Stock                 72,000          33.33            72,000         33.33            54,000      100.00 Other paid-in capital                   9,000          50.00              9,000         50.00              6,000      100.00 Retained Earnings                 42,358          18.08            38,364           6.95            35,872      100.00 Total Liabilities & Equity               144,447          24.30          140,263         20.70          116,208      100.00