Question

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
	2017			2016			2015
Sales	$	397,455		$	304,483		$	211,300
Cost of goods sold		239,268			192,738			135,232
Gross profit		158,187			111,745			76,068
Selling expenses		56,439			42,019			27,892
Administrative expenses		35,771			26,795			17,538
Total expenses		92,210			68,814			45,430
Income before taxes		65,977			42,931			30,638
Income taxes		12,272			8,801			6,220
Net income	$	53,705		$	34,130		$	24,418

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	53,412		$	41,789		$	55,862
Long-term investments		0			1,000			4,480
Plant assets, net		99,195			105,398			62,431
Total assets	$	152,607		$	148,187		$	122,773
Liabilities and Equity
Current liabilities	$	22,281		$	22,080		$	21,485
Common stock		69,000			69,000			51,000
Other paid-in capital		8,625			8,625			5,667
Retained earnings		52,701			48,482			44,621
Total liabilities and equity	$	152,607		$	148,187		$	122,773
Required: 1. Complete the below table to calculate each year's current ratio. 2. Complete the below table to calculate income statement data in common-size percents. 3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year.

Answer 1

ans 1
	2017	2016	2014
Current Assets A	53412	41789	55862
Current Liabilities L	22281	22080	21485
Current Ratio A/B	2.40	1.89	2.60
if rounded to one decimal	2.4	1.9	2.6
ans 2
Common size
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
	2017	%	2016	%	2015	%
Sales	397,455	100	304,483	100	211,300	100
Cost of goods sold	239,268	60.2	192,738	63.3	135,232	64.0
Gross profit	158,187	39.8	111,745	36.7	76,068	36.0
Selling expenses	56,439	14.2	42,019	13.8	27,892	13.2
Administrative expenses	35,771	9.0	26,795	8.8	17,538	8.3
Total expenses	92,210	23.2	68,814	22.6	45,430	21.5
Income before taxes	65,977	16.6	42,931	14.1	30,638	14.5
Income taxes	12,272	3.1	8,801	2.9	6,220	2.9
Net income	53,705	13.5	34,130	11.2	24,418	11.6
Cost of good sold is calculated as=239268/397455*100=60.2% . Base is sales
ans 3
Trend
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2015	2016	Increase/(decraese)		2015	2017	Increase/(decraese)
Assets			I=Amt (2016-2015)	% I/2015 base*100			I=Amt (2017-2015)	% I/2015 base*100
Current assets	55,862	41,789	-14,073	-25.2	55,862	53,412	-2,450	-4.4
Long-term investments	4,480	1,000	-3,480	-77.7	4,480	0	-4,480	-100.0
Plant assets, net	62,431	105,398	42,967	68.8	62,431	99,195	36,764	58.9
Total assets	122,773	148,187	25,414	20.7	122,773	152,607	29,834	24.3
Liabilities and Equity
Current liabilities	21,485	22,080	595	2.8	21,485	22,281	796	3.7
Common stock	51,000	69,000	18,000	35.3	51,000	69,000	18,000	35.3
Other paid-in capital	5,667	8,625	2,958	52.2	5,667	8,625	2,958	52.2
Retained earnings	44,621	48,482	3,861	8.7	44,621	52,701	8,080	18.1
Total liabilities and equity	122,773	148,187	25,414	20.7	122,773	152,607	29,834	24.3