Question

KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2018, 2017, and 2016 2018 2017 2016 sales $389,743 $298,575 $207,200 Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense 234,625 188,401 110,174 41,203 26,275 67,478 42,696 8,753 132,608 155,118 55, 344 35,077 90,421 64,697 12,034 74,592 27,350 17,198 44,548 30,044 6,099 Net income $ 52,663 $ 33,943 $ 23,945 KORBIN COMPANY Comparative Balance Sheets December 31, 2018, 2017, and 2016 2018 2017 2016 Assets $ 49,290 $ 38,563 51,550 4,850 Current assets Long-term investments Plant assets, net 600 92,961 98,968 58,042 Total assets $142,251 $138,131 $114,442 Liabilities and Equity Current liabilities $ 20,769 $ 20,582 $20,027 65,000 8,125 44,424 Common stock other paid-in capital Retained earnings 65,000 8,125 48,357 47,000 5,222 42,193 Total liabilities and equity $142,251 $138,131 $114,442

Answer 1

82 X for 2 в | | KORBIN COMPANY Common Size Comparative Income Statements For years ended December 31, 2018,2017, and 2016 2018 2017 Sales 100.00% 100.00% Cost of goods sold 60.20% 63.10% Gross profit 39.80% ] 36.90% Selling expenses 14.20% 13.80% Administrative expenses 9.00% 8.80% Total expenses 23.20% 22.60% Income before taxes 16.60% 14.30% Income tax expense 3.09% / 2.93% Net income 13.51% / 11.37% 2016 100.00% 64.00% 36.00% 13.20% 8.30% 21.50% 14.50% 2.94% 11.56%

for formulas and calculations, refer to the image below -

X for 2 B C D E F G H I 2 KORBIN COMPANY Common Size Comparative Income Statements For years ended December 31, 2018, 2017, and 2016 2018 2018 2017 2017 2016 2016 Sales 389743 =D6/$D$6 298575 =F6/$F$6 207200 =H6/$H$6 Cost of goods sold 234625 =D7/$D$6 188401 =F7/$F$6 132608 =H7/$H$6 Gross profit =D6-D7 =D8/$D$6 =F6-F7 =F8/$F$6 =H6-H7 =H8/$H$6 Selling expenses 55344 =D9/$D$6 41203 =F9/$F$6 27350 =H9/$H$6 Administrative expenses 35077 =D10/$D$6 26275 =F10/$F$6 17198 =H10/$H$6 Total expenses =D9+D10 =D11/$D$6 |=F9+F10 =F11/$F$6 =H9+H10 =H11/$H$6 Income before taxes =D8-D11 |=D12/$D$6 |=F8-F11 =F12/$F$6 |=H8-H11 =H12/$H$6 Income tax expense 12034 =D13/$D$6 8753 =F13/$F$6 6099 =H13/$H$6 Net income =D12-D13 =D14/$D$6 |=F12-F13 =F14/$F$6 =H12-H13 =H14/$H$6

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