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 Sales $ 490,941 $ 376,101 Cost of goods sold 295,546 236,944 2013 $ 261,000 167,040 Gross profit Selling expenses Administrative expenses 195,395 69,714 44,185 139,157 51,902 33,097 93,960 34,452 21,663 Total expenses 113,899 84,999 56,115 Income before taxes Income taxes 81,496 15,158 54,158 11,102 37,845 7,683 Net income $ 66,338 $ 43,056 $ 30,162

[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 Sales $ 490,941 $ 376,101 Cost of goods sold 295,546 236,944 2013 $ 261,000 167,040 Gross profit Selling expenses Administrative expenses 195,395 69,714 44,185 139,157 51,902 33,097 93,960 34,452 21,663 Total expenses 113,899 84,999 56,115 Income before taxes Income taxes 81,496 15,158 54,158 11,102 37,845 7,683 Net income $ 66,338 $ 43,056 $ 30,162

KORBIN COMPANY Comparative Balance Sheets December 31, 2015, 2014, and 2013 2015 2014 2013 Assets Current assets Long-term investments Plant assets, net $ 51,869 $ 40,581 800 99,703 $ 54,248 3,010 59,630 93,423 Total assets $ 145,292 $ 141,084 $ 116,888 $ $ Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings 21,213 65,000 8,125 50,954 21,022 65,000 8,125 46,937 $ 20,455 47,000 5,222 44,211 Total liabilities and equity $ 145,292 $ 141,084 $ 116,888

Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Choose Numerator: Choose Denominator: Current ratio 2015 Current ratio oto 1 0 to 1 0 to 1 2014 2013 1 =

2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2015, 2014, and 2013 2015 2014 2013 Sales Cost of goods sold Gross profit % 0% Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income

3. 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.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2015, 2014, and 2013 I 2015 2014 2013 Assets Current assets Long-term investments 100.00 % 100.00 100.00 100.00 % Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 100.00 % 100.00 100.00 100.00 | 100.00 %

Answer 1

Korbin Company Common Size Income Statement For the period ending.. 2015 Amount % Sales 490941 100.00% Cost of goods sold 295546 60.20% Gross Profit 195395 39.80% Selling Expenses 69714 14.20% Administrative Expense 44185 9.00% Total Expenses 81496 16.60% Income before Taxes 15158 3.09% Net Income 66338 13.51% 2014 Amount % 376101 100.00% 236944 63.00% 139157 37.00% 51902 13.80% 33097 8.80% 54158 14.40% 11102 2.95% 43056 11.45% 2013 Amount % 261000 100.00% 167040 64.00% 93960 36.00% 34452 13.20% 21663 8.30% 37845 14.50% 7683 2.94% 30162 11.56% 2013 Balance sheet Data in Trend Percents For the period ending.. 2015 2014 Assets Current Assets 95.61% 74.81% Long Term Investments 0.00% 26.58% Plant Assets, Net 156.67% 167.20% Total Assets 124.30% 120.70% Liabilities & Equity Current Liabilities 103.71% 102.77% Common Stock 138.30% 138.30% Oher Paid in Capital 155.59% 155.59% Retained Earnings 115.25% 106.17% Total Liabilities & Equity 124.30% 120.70% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Current Ratio = Current Assets / Current Liabilities 2015 = 51869 / 21213 = 2.45 2014 = 40581 / 21022 = 1.93 2013 = 54248 / 20455 = 2.65

A B F i Korbin Company 3 Common Size Income Statement 4 For the period ending.. 5 7 Sales 8 Cost of goods sold 9 Gross Profit 10 Selling Expenses 11 Administrative Expense 12 Total Expenses 13 Income before Taxes 14 Net Income 2015 Amount 490941 295546 =B7-B8 69714 44185 =B9-B10-B11 15158 =B12-B13 =B8/$B$7 =B9/$B$7 =B10/$B$7 =B11/$B$7 =B12/$B$7 =B13/$B$7 =B14/$B$7 2014 Amount 376101 236944 =D7-D8 51902 33097 =D9-D10-D11 11102 =D12-D13 =D8/$D$7 =D9/$D$7 =D10/$D$7 =D11/$D$7 =D12/$D$7 =D13/$D$7 =D14/$D$7 2013 Amount 261000 167040 =F7-F8 34452 21663 =F9-F10-F11 7683 =F12-F13 =F8/$F$7 =F9/$F$7 =F10/$F$7 =F11/$F$7 =F12/$F$7 =F13/$F$7 =F14/$F$7 15 2015 2014 2013 16 Balance sheet Data in Trend Percents 17 For the period ending.. 18 19 Assets 20 Current Assets 21 Long Term Investments 22 Plant Assets, Net 23 Total Assets 24 Liabilities & Equity 25 Current Liabilities 26 Common Stock 27 Oher Paid in Capital 28 Retained Earnings 29 Total Liabilities & Equity 20 =51869/54248 =0/3010 =93423/59630 =145292/116888 =40581/54248 =800/3010 =99703/59630 =141084/116888 1 =21213/20455 =65000/47000 =8125/5222 =50954/44211 =145292/116888 =21022/20455 =65000/47000 =8125/5222 =46937/44211 =141084/116888 1