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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	$	392,189		$	300,449		$	208,500
Cost of goods sold		236,098			189,884			133,440
Gross profit		156,091			110,565			75,060
Selling expenses		55,691			41,462			27,522
Administrative expenses		35,297			26,440			17,306
Total expenses		90,988			67,902			44,828
Income before taxes		65,103			42,663			30,232
Income taxes		12,109			8,746			6,137
Net income	$	52,994		$	33,917		$	24,095

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	53,162		$	41,593		$	55,599
Long-term investments		0			900			3,460
Plant assets, net		100,263			106,488			64,372
Total assets	$	153,425		$	148,981		$	123,431
Liabilities and Equity
Current liabilities	$	22,400		$	22,198		$	21,600
Common stock		71,000			71,000			53,000
Other paid-in capital		8,875			8,875			5,889
Retained earnings		51,150			46,908			42,942
Total liabilities and equity	$	153,425		$	148,981		$	123,431

2. Complete the below table to calculate income statement data in common-size percents.

Answer 1

Ans.	KORBIN COMPANY
	Common size Income Statement
	For Years Ended December 31, 2017, 2016 and 2015
				2017	%	2016	%	2015	%
	Sales			392,189	100.00%	300,449	100.00%	208,500	100.00%
	Cost of Goods Sold			236,098	60.20%	189,884	63.20%	133,440	64.00%
	Gross Profit			$ 156,091	39.80%	$ 110,565	36.80%	$          75,060	36.00%
	Selling Expenses			55,691	14.20%	41,462	13.80%	27,522	13.20%
	Admministrative expenses			35,297	9.00%	26,440	8.80%	17,306	8.30%
	Total Expenses			$    90,988	23.20%	$    67,902	22.60%	$          44,828	21.50%
	Income before Taxes			$    65,103	16.60%	$    42,663	14.20%	$          30,232	14.50%
	Income Taxes			12,109	3.09%	8,746	2.91%	6,137	2.94%
	Net Income			$    52,994	13.51%	$    33,917	11.29%	$          24,095	11.56%