Question

Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and 2017
	2019			2018			2017
Sales	$	479,843		$	367,599		$	255,100
Cost of goods sold		288,865			230,117			163,264
Gross profit		190,978			137,482			91,836
Selling expenses		68,138			50,729			33,673
Administrative expenses		43,186			32,349			21,173
Total expenses		111,324			83,078			54,846
Income before taxes		79,654			54,404			36,990
Income tax expense		14,816			11,153			7,509
Net income	$	64,838		$	43,251		$	29,481

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
	2019			2018			2017
Assets
Current assets	$	54,825		$	36,695		$	49,052
Long-term investments		0			1,100			4,700
Plant assets, net		98,747			89,776			51,941
Total assets	$	153,572		$	127,571		$	105,693
Liabilities and Equity
Current liabilities	$	22,422		$	19,008		$	18,496
Common stock		67,000			67,000			49,000
Other paid-in capital		8,375			8,375			5,444
Retained earnings		55,775			33,188			32,753
Total liabilities and equity	$	153,572		$	127,571		$	105,693

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

Answer 1

Korbin Company
Common size Comparative Income statement
For the year's ended December 31, 2019, 2018, 2017
	2019		2018		2017
	(i)	(i) / $479843	(ii)	(ii) / $367599	(iii)	(iii) / $255100
Sales	$ 4,79,843	100.00%	$ 3,67,599	100.00%	$2,55,100	100.00%
Cost of goods sold	$ 2,88,865	60.20%	$ 2,30,117	62.60%	$1,63,264	64.00%
Gross Profit	$ 1,90,978	39.80%	$ 1,37,482	37.40%	$    91,836	36.00%
Selling Expenses	$     68,138	14.20%	$     50,729	13.80%	$    33,673	13.20%
Administrative Expenses	$     43,186	9.00%	$     32,349	8.80%	$    21,173	8.30%
Total operating expenses	$ 1,11,324	23.20%	$     83,078	22.60%	$    54,846	21.50%
Income before income tax	$     79,654	16.60%	$     54,404	14.80%	$    36,990	14.50%
Income tax expense	$     14,816	3.09%	$     11,153	3.03%	$      7,509	2.94%
Net Income	$     64,838	13.51%	$     43,251	11.77%	$    29,481	11.56%