In: Accounting
KORBIN COMPANY | ||||||||||||
Comparative Income Statements | ||||||||||||
For Years Ended December 31, 2015, 2014, and 2013 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Sales | $ | 450,688 | $ | 345,264 | $ | 239,600 | ||||||
Cost of goods sold | 271,314 | 216,826 | 153,344 | |||||||||
Gross profit | 179,374 | 128,438 | 86,256 | |||||||||
Selling expenses | 63,998 | 47,646 | 31,627 | |||||||||
Administrative expenses | 40,562 | 30,383 | 19,887 | |||||||||
Total expenses | 104,560 | 78,029 | 51,514 | |||||||||
Income before taxes | 74,814 | 50,409 | 34,742 | |||||||||
Income taxes | 13,915 | 10,334 | 7,053 | |||||||||
Net income | $ | 60,899 | $ | 40,075 | $ | 27,689 | ||||||
KORBIN COMPANY | ||||||||||||
Comparative Balance Sheets | ||||||||||||
December 31, 2015, 2014, and 2013 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Assets | ||||||||||||
Current assets | $ | 48,375 | $ | 37,847 | $ | 50,593 | ||||||
Long-term investments | 0 | 900 | 3,080 | |||||||||
Plant assets, net | 88,471 | 94,135 | 56,420 | |||||||||
Total assets | $ | 136,846 | $ | 132,882 | $ | 110,093 | ||||||
Liabilities and Equity | ||||||||||||
Current liabilities | $ | 19,980 | $ | 19,799 | $ | 19,266 | ||||||
Common stock | 72,000 | 72,000 | 54,000 | |||||||||
Other paid-in capital | 9,000 | 9,000 | 6,000 | |||||||||
Retained earnings | 35,866 | 32,083 | 30,827 | |||||||||
Total liabilities and equity | $ | 136,846 | $ | 132,882 | $ | 110,093 | ||||||
Required: | |
a. | Complete the below table to calculate each year's current ratio. |
b. |
Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) |
c. |
Complete the below table to calculate the balance sheet data in trend percents with 2013 as the base year. (Round your percentage answers to 2 decimal places.) |
Current Assets |
/ |
Current Liabilities |
= |
Current Ratio |
|
2013 |
$ 50,593.00 |
/ |
$ 19,266.00 |
= |
2.63 |
2014 |
$ 37,847.00 |
/ |
$ 19,799.00 |
= |
1.91 |
2015 |
$ 48,375.00 |
/ |
$ 19,980.00 |
= |
2.42 |
KORBIN COMPANY |
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Comparative Income Statements |
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For Years Ended December 31, 2015, 2014, and 2013 |
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2015 |
2014 |
2013 |
||||
Sales |
$ 4,50,688.00 |
100.00% |
$ 3,45,264.00 |
100.00% |
$ 2,39,600.00 |
100.00% |
Cost of goods sold |
$ 2,71,314.00 |
60.20% |
$ 2,16,826.00 |
62.80% |
$ 1,53,344.00 |
64.00% |
Gross profit |
$ 1,79,374.00 |
39.80% |
$ 1,28,438.00 |
37.20% |
$ 86,256.00 |
36.00% |
Selling expenses |
$ 63,998.00 |
14.20% |
$ 47,646.00 |
13.80% |
$ 31,627.00 |
13.20% |
Administrative expenses |
$ 40,562.00 |
9.00% |
$ 30,383.00 |
8.80% |
$ 19,887.00 |
8.30% |
Total expenses |
$ 1,04,560.00 |
23.20% |
$ 78,029.00 |
22.60% |
$ 51,514.00 |
21.50% |
Income before taxes |
$ 74,814.00 |
16.60% |
$ 50,409.00 |
14.60% |
$ 34,742.00 |
14.50% |
Income taxes |
$ 13,915.00 |
3.09% |
$ 10,334.00 |
2.99% |
$ 7,053.00 |
2.94% |
Net income |
$ 60,899.00 |
13.51% |
$ 40,075.00 |
11.61% |
$ 27,689.00 |
11.56% |
KORBIN COMPANY |
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Comparative Balance Sheets |
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December 31, 2015, 2014, and 2013 |
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2015 |
2014 |
2013 |
|||||
Amount |
Increase (Decrease) over 2013 |
Increase (Decrease) in % over 2013 |
Amount |
Increase (Decrease) over 2013 |
Increase (Decrease) in % over 2013 |
||
Assets |
|||||||
Current assets |
$ 48,375.00 |
$ (2,218.00) |
-4.38% |
$ 37,847.00 |
$ (12,746.00) |
-25.19% |
$ 50,593.00 |
Long-term investments |
$ - |
$ (3,080.00) |
-6.09% |
$ 900.00 |
$ (2,180.00) |
-4.31% |
$ 3,080.00 |
Plant assets, net |
$ 88,471.00 |
$ 32,051.00 |
63.35% |
$ 94,135.00 |
$ 37,715.00 |
74.55% |
$ 56,420.00 |
Total assets |
$ 1,36,846.00 |
$ 26,753.00 |
52.88% |
$ 1,32,882.00 |
$ 22,789.00 |
45.04% |
$ 1,10,093.00 |
Liabilities and Equity |
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Current liabilities |
$ 19,980.00 |
$ 714.00 |
1.41% |
$ 19,799.00 |
$ 533.00 |
1.05% |
$ 19,266.00 |
Common stock |
$ 72,000.00 |
$ 18,000.00 |
35.58% |
$ 72,000.00 |
$ 18,000.00 |
35.58% |
$ 54,000.00 |
Other paid-in capital |
$ 9,000.00 |
$ 3,000.00 |
5.93% |
$ 9,000.00 |
$ 3,000.00 |
5.93% |
$ 6,000.00 |
Retained earnings |
$ 35,866.00 |
$ 5,039.00 |
9.96% |
$ 32,083.00 |
$ 1,256.00 |
2.48% |
$ 30,827.00 |
Total liabilities and equity |
$ 1,36,846.00 |
$ 26,753.00 |
52.88% |
$ 1,32,882.00 |
$ 22,789.00 |
45.04% |
$ 1,10,093.00 |