Question

2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)

3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. (Round your percentage answers to 2 decimal places.)

Required information

[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, 2017, 2016, and 2015
	2017			2016			2015
Sales	$	440,342		$	337,338		$	234,100
Cost of goods sold		265,086			211,511			149,824
Gross profit		175,256			125,827			84,276
Selling expenses		62,529			46,553			30,901
Administrative expenses		39,631			29,686			19,430
Total expenses		102,160			76,239			50,331
Income before taxes		73,096			49,588			33,945
Income taxes		13,596			10,166			6,891
Net income	$	59,500		$	39,422		$	27,054

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	53,155		$	41,588		$	55,593
Long-term investments		0			1,100			3,100
Plant assets, net		97,214			103,326			62,280
Total assets	$	150,369		$	146,014		$	120,973
Liabilities and Equity
Current liabilities	$	21,954		$	21,756		$	21,170
Common stock		68,000			68,000			50,000
Other paid-in capital		8,500			8,500			5,556
Retained earnings		51,915			47,758			44,247
Total liabilities and equity	$	150,369		$	146,014		$	120,973

Answer 1

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
	2017		Percentage of total sales = Individual value/total sales	2016		Percentage of total sales = Individual value/total sales	2015		Percentage of total sales = Individual value/total sales
Sales	$	440,342	100.00%	$	337,338	100.00%	$	234,100	100.00%
Cost of goods sold		265,086	60.20%		211,511	62.70%		149,824	64.00%
Gross profit		175,256	39.80%		125,827	37.30%		84,276	36.00%
Selling expenses		62,529	14.20%		46,553	13.80%		30,901	13.20%
Administrative expenses		39,631	9.00%		29,686	8.80%		19,430	8.30%
Total expenses		102,160	23.20%		76,239	22.60%		50,331	21.50%
Income before taxes		73,096	16.60%		49,588	14.70%		33,945	14.50%
Income taxes		13,596	3.09%		10,166	3.01%		6,891	2.94%
Net income	$	59,500	13.51%	$	39,422	11.69%	$	27,054	11.56%
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets	Increase or decrease over Year 2017 = (individual value 2017 -individual value 2015)/Individual value 2015)	Individual values		Increase or decrease over Year 2016 = (individual value 2016 -individual value 2015)/Individual value 2015)	Individual values			2015 = base value
Current assets	-4.39%	53,155		-25.19%	41,588		$	55,593
Long-term investments	-100.00%	0		-64.52%	1,100			3,100
Plant assets, net	56.09%	97,214		65.91%	103,326			62,280
Total assets	24.30%	150,369		20.70%	146,014		$	120,973
Liabilities and Equity
Current liabilities	3.70%	21,954		2.77%	21,756		$	21,170
Common stock	36.00%	68,000		36.00%	68,000			50,000
Other paid-in capital	52.99%	8,500		52.99%	8,500			5,556
Retained earnings	17.33%	51,915		7.94%	47,758			44,247
Total liabilities and equity	24.30%	150,369		20.70%	146,014		$	120,973