Required information Problem 17-2A Ratios, common-size statements, and trend per
ID: 341495 • Letter: R
Question
Required information
Problem 17-2A 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:
Problem 17-2A Part 2
2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)
Required information
Problem 17-2A 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:
Problem 17-2A Part 3
3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. (Round your percentage answers to 2 decimal places.)
Explanation / Answer
Answer
Requirement 2
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31 2017 2016 and 2015
2017
2016
2015
Amount
% of sales
Amount
% of sales
Amount
% of sales
Sales
$ 449371.00
100.00%
$344255.00
100.00%
$238900.00
100.00%
Cost of goods sold
$ 270521.00
60.20%
$217225.00
63.10%
$152896.00
64.00%
Gross profit
$ 178850.00
39.80%
$127030.00
36.90%
$ 86004.00
36.00%
Selling expenses
$ 63811.00
14.20%
$ 47507.00
13.80%
$ 31535.00
13.20%
Administrative expenses
$ 40443.00
9.00%
$ 30294.00
8.80%
$ 19829.00
8.30%
Total expenses
$ 104254.00
23.20%
$ 77801.00
22.60%
$ 51364.00
21.50%
Income before taxes
$ 74596.00
16.60%
$ 49229.00
14.30%
$ 34640.00
14.50%
Income taxes
$ 13875.00
3.09%
$ 10092.00
2.93%
$ 7032.00
2.94%
Net income
$ 60721.00
13.51%
$ 39137.00
11.37%
$ 27608.00
11.56%
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
2017
2016
2015
Assets
Amount
Change as per 2015 data
% change
Amount
Change as per 2015 data
% change
Base data
Base %
Current assets
$ 45,817.00
$ (2,101.00)
-4.38%
$ 35,846.00
$ (12,072.00)
-25.19%
$ 47,918.00
100.00%
Long-term investments
$ -
$ (3,610.00)
-100.00%
$ 1,100.00
$ 1,100.00
2.30%
$ 3,610.00
100.00%
Plant assets, net
$ 86,412.00
$ 31,561.00
57.54%
$ 91,453.00
$ 91,453.00
190.85%
$ 54,851.00
100.00%
Total assets
$1,32,229.00
$ 25,850.00
24.30%
$1,28,399.00
$ 1,28,399.00
267.96%
$1,06,379.00
100.00%
Liabilities and Equity
Current liabilities
$ 19,305.00
$ 689.00
3.70%
$ 19,131.00
$ 19,131.00
39.92%
$ 18,616.00
100.00%
Common stock
$ 66,000.00
$ 18,000.00
37.50%
$ 66,000.00
$ 66,000.00
137.74%
$ 48,000.00
100.00%
Other paid-in capital
$ 8,250.00
$ 2,917.00
54.70%
$ 8,250.00
$ 8,250.00
17.22%
$ 5,333.00
100.00%
Retained earnings
$ 38,674.00
$ 4,244.00
12.33%
$ 35,018.00
$ 35,018.00
73.08%
$ 34,430.00
100.00%
Total liabilities and equity
$1,32,229.00
$ 25,850.00
24.30%
$1,28,399.00
$ 1,28,399.00
267.96%
$1,06,379.00
100.00%
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31 2017 2016 and 2015
2017
2016
2015
Amount
% of sales
Amount
% of sales
Amount
% of sales
Sales
$ 449371.00
100.00%
$344255.00
100.00%
$238900.00
100.00%
Cost of goods sold
$ 270521.00
60.20%
$217225.00
63.10%
$152896.00
64.00%
Gross profit
$ 178850.00
39.80%
$127030.00
36.90%
$ 86004.00
36.00%
Selling expenses
$ 63811.00
14.20%
$ 47507.00
13.80%
$ 31535.00
13.20%
Administrative expenses
$ 40443.00
9.00%
$ 30294.00
8.80%
$ 19829.00
8.30%
Total expenses
$ 104254.00
23.20%
$ 77801.00
22.60%
$ 51364.00
21.50%
Income before taxes
$ 74596.00
16.60%
$ 49229.00
14.30%
$ 34640.00
14.50%
Income taxes
$ 13875.00
3.09%
$ 10092.00
2.93%
$ 7032.00
2.94%
Net income
$ 60721.00
13.51%
$ 39137.00
11.37%
$ 27608.00
11.56%
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