Question

Part 3 of 4 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. points eBook KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $414,761 $317,741 $220,500 Cost of goods sold 249,686 201,766 141, 120 Gross profit 165,075 115,975 79,380 Selling expenses 58,896 43.848 29.106 Administrative expenses 37,328 27,961 18,302 Total expenses 96,224 71, 809 47,408 Income before taxes 68,851 44,166 31,972 Income tax expense 12,806 9,054 6,490 Net income $ 56,045 $ 35,112 $ 25,482 Print References KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 59,394 $ 39,753 $ 53,140 Long-term investments 500 3,060 Plant assets, net 108,624 99,318 59,435 Total assets $168,018 $139,571 $115,635 Liabilities and Equity Current liabilities $ 24,531 $ 20,796 $ 20,236 Common stock 72,000 72,000 54,000 Other paid-in capital 9,000 9,000 6,000 Retained earnings 62,487 37,775 35, 399 Total liabilities and equity $168,018 $139,571 $115,635 Problem 17-2A Part 3

Answer 1

| 2017 Requirement: 3 KORBIN COMPANY Balance sheet Data in Trend Percents December 31, 2019, 2018 and 2017 2019 2018 Assets Current assets 111.77% 74.81 % Long term investments 0.00 % 16.34 % Plant assets, net 182.76% 167.10% Total assets 145.30% 120.70% Liabilities and Equity Current liabilities 121.22 % 102.77 % Common stock 133.33% 133.33% Other paid in capital 150.00 % 150.00 % Retained earnings 176.52 % 106.71 % Total liabilities and equity 145.30% 120.70 % 100% 100% 100 % 100% 100 % 100% 100% 100 % 100% Formula: (Current year value / Base year Value) *100