Question

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2018, 2017, and 2016
	2018			2017			2016
Sales	$	382,784		$	293,244		$	203,500
Cost of goods sold		230,436			186,210			130,240
Gross profit		152,348			107,034			73,260
Selling expenses		54,355			40,468			26,862
Administrative expenses		34,451			25,805			16,891
Total expenses		88,806			66,273			43,753
Income before taxes		63,542			40,761			29,507
Income tax expense		11,819			8,356			5,990
Net income	$	51,723		$	32,405		$	23,517

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

	KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2018, 2017, and 2016 2018 2017 2016 Sales % % % Cost of goods sold -1 -1 -1 Gross profit Selling expenses -1 -1 -1 Administrative expenses -1 -1 -1 Total expenses Income before taxes -1 -1 -1 Income tax expense -1 -1 -1 Net income % % %

Answer 1

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2018, 2017, and 2016
	2018	$	%		2017	%		2016
Sales	$	382,784	100%		293,244	100%		203,500	100%
Cost of goods sold		230,436	60.20%		186,210	63.50%		130,240	64.00%
Gross profit		152,348	39.80%		107,034	36.50%		73,260	36.00%
Selling expenses		54,355	14.20%		40,468	13.80%		26,862	13.20%
Administrative expenses		34,451	9.00%		25,805	8.80%		16,891	8.30%
Total expenses		88,806	23.20%		66,273	22.60%		43,753	21.50%
Income before taxes		63,542	16.60%		40,761	13.90%		29,507	14.50%
Income tax expense		11,819	3.09%		8,356	2.85%		5,990	2.94%
Net income	$	51,723	13.51%		32,405	11.05%		23,517	11.56%

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