Question

Selected comparative financial statements of Korbin Company follow: KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 412,503 $ 316,011 $ 219,300 Cost of goods sold 248,327 197,823 140,352 Gross profit 164,176 118,188 78,948 Selling expenses 58,575 43,610 28,948 Administrative expenses 37, 125 27,809 18, 202 Total expenses 95,700 71,419 47,150 Income before taxes 68, 476 46,769 31,798 Income taxes 12,737 9,588 9,588 6,455 Net income $ 55,739 $ 37,181 $ 25, 343 KO 2015 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 Assets Current assets $ 53,550 $ 41,896 Long-term investments 0 900 Plant assets, net 97,936 104,302 Total assets $ 151,486 $ 147,098 Liabilities and Equity Current liabilities $ 22,117 $ 21,918 Common stock 72,000 72,000 Other paid-in capital 9,000 9,000 Retained earnings 48,369 44,180 Total liabilities and equity $ 151,486 $ 147,098 $ 56,006 3,740 62,125 $ 121,871 $ 21,327 54,000 6,000 40,544 $ 121,871

Answer 1

rate positively ..

under common size statement everything will be experessed as % of sales ..

income statement common size
	2017		2016		2015
Sales	412503	100.00%	316011	100.00%	219300	100.00%
Cost of goods sold	248327	60.20%	197823	62.60%	140352	64.00%
Gross profit	164176	39.80%	118188	37.40%	78948	36.00%
selling expenses	58575	14.20%	43610	13.80%	28948	13.20%
administration expenses	37125	9.00%	27809	8.80%	18202	8.30%
total expenses	95700	23.20%	71419	22.60%	47150	21.50%
income before taxes	68476	16.60%	46769	14.80%	31798	14.50%
income taxes	12737	3.09%	9588	3.03%	6455	2.94%
net income	55739	13.51%	37181	11.77%	25343	11.56%