Question

Problem 13-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 The following information applies to the questions clsplayed below) 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 $432,442 $331,286 $229,900 Cost of goods sold 260,330 207,054 147, 136 Gross profit 172,112 124,232 82,764 Selling expenses 61, 407 45,717 30,347 Administrative expenses 38,920 29,153 19,082 Total expenses 100, 327 74,870 49,429 Income before taxes 71,785 49,362 33,335 Income taxes 13,352 10,1196,767 Net income $ 58,433 $ 39,243 $ 26,568 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 2015 Assets Current assets $ 53,448 $ 41,816 $ 55,899 Long-term investments @ 1,000 4,260 Plant assets, net 97,748 104,001 61,479 Total assets $151,196 $146,817 $121,638 Liabilities and Equity Current liabilities $ 22,075 $ 21,876 $ 21,287 Common stock 63,00 63,000 45,000 other paid-in capital 7,875 7,875 5,000 Retained earnings 58,246 54,066 50,351 Total liabilities and equity $151, 196 $146,817 $121,638

Answer 1

1)
	Current Assets	/	Current Liabilities	=	Current Ratio
2017	53448	/	22075	=	2.42	to 1
2016	41816	/	21876	=	1.91	to 1
2015	55899	/	21287	=	2.63	to 1
2)		2017	%	2016	%	2015	%
	Sales	432442	100.00%	331286	100.00%	229900	100.00%
	COGS	260330	60.20%	207054	62.50%	147136	64.00%
	Gross Profit	172112	39.80%	124232	37.50%	82764	36.00%
	Selling Expenses	61407	14.20%	45717	13.80%	30347	13.20%
	Admin Expenses	38920	9.00%	29153	8.80%	19082	8.30%
	Total Expenses	100327	23.20%	74870	22.60%	49429	21.50%
	Income Before Taxes	71785	16.60%	49362	14.90%	33335	14.50%
	Income Taxes	13352	3.09%	10119	3.05%	6767	2.94%
	Net Income	58433	13.51%	39243	11.85%	26568	11.56%
3)	Balance sheet in trend percent
		2017	%	2016	%	2015	%
	Current Assets	53448	95.62%	41816	74.81%	55899	100.00%
	Long Term Investment	0	0.00%	1000	23.47%	4260	100.00%
	Plant	97748	158.99%	104001	169.17%	61479	100.00%
	Total Assets	151196	124.30%	146817	120.70%	121638	100.00%
	Liabilities & Equity
	Current Liabilities	22075	103.70%	21876	102.77%	21287	100.00%
	Common stock	63000	140.00%	63000	140.00%	45000	100.00%
	Other Paid In Capital	7875	157.50%	7875	157.50%	5000	100.00%
	Retained Earnings	58246	115.68%	54066	107.38%	50351	100.00%
	Total Liabilities and assets	151196	124.30%	146817	120.70%	121638	100.00%
	Let me the wrong answer, Please rate.