The following information applies to the questions displayed below.] Selected co
ID: 2543771 • Letter: T
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 $ 524,987 402,183 279100 178,624 Cost of goods sold 253777 Gross profit Selling expenses Administrative expenses 208.945 74,548 47.249 148406 55.501 35.392 00,476 36.841 Total expenses 121,797 90,893 60,006 57,513 Income before taxes Income taxes 40.470 8,215 Net income $ 70.938 4572332.255 KORBIN COMPANY Comparative Balance Sheets December 31, 2015, 2014, and 2013 Current assets Plant assets, net Total assets $ 54,073 42,306 S56,553 3,920 62,589 900 152,966 148536 s 123,06:2 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings S 22,333 72,000 9,000 22,132 21,536 54,000 6,000 41,526 72.000 9.000 45.404 Total liabilities and equity $ 152.966 148 536 123,062Explanation / Answer
Current Ratio Current Assets / Current Liabilities = Current Ratio 2015 $ 54,073 / $ 22,333 = 2.42 to 1 2014 $ 42,306 / $ 22,132 = 1.91 to 1 2013 $ 56,553 / $ 21,536 = 2.63 to 1 KORBIN COMPANY Common - Size Comparative Income Statement For year ended December 31, 2015, 2014 and 2013 2015 % 2014 % 2013 % Sales 100.00% 100.00% 100.00% Cost of Goods of Sold 60.20% 63.10% 64.00% Gross Profit 39.80% 36.90% 36.00% Selling Expenses 14.20% 13.80% 13.20% Administrative Expenses 9.00% 8.80% 8.30% Total Expenses 23.20% 22.60% 21.50% Income before taxes 16.60% 14.30% 14.50% Income taxes 3.09% 2.93% 2.94% Net Income 13.51% 11.37% 11.56% Note : Percentage is calculated by dividing each category by Sales.
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