Selected comparative financial statements of Korbin Company follow: KORBIN COMPA
ID: 2549015 • Letter: S
Question
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 Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income $ 420,780 322,352 $223,700 143,168 80,532 29,528 18,567 48,095 32,437 6,585 $ 56,857 36,902$ 25,852 253,310 167,470 59,751 37,870 97,621 69,849 12,992 203,082 119,270 44,485 28,367 72,852 46,418 9,516 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 2015 Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 51,495 40,289 53,857 4,110 62,815 $150,132 $145,784 $120,782 1,100 104,395 98,637 $ 21,919 $ 21,722 $ 21,137 49,000 5,444 45,201 $150,132 $145,784 $120,782 67,000 8,375 52,838 67,000 8,375 48,687Explanation / Answer
Answer
Choose Numerator
/
Choose Denominator
=
Current Ratio
Current Assets
/
Current Liabilities
=
2017
$51495
/
$21919
=
2.35
2016
$40289
/
$21722
=
1.85
2015
$53857
/
$21137
=
2.55
% of each year is calculated as a percentage of that year’s Sale [Sales is the denominator]
2017
2016
2015
Amount ($)
Percentage of Sale
Amount ($)
Percentage of Sale
Amount ($)
Percentage of Sale
Sales
420780
100.00%
322352
100.00%
223700
100.00%
COGS
253310
60.20%
203082
63.00%
143168
64.00%
Gross Profit
167470
39.80%
119270
37.00%
80532
36.00%
Selling Expenses
59751
14.20%
44485
13.80%
29528
13.20%
Administrative expense
37870
9.00%
28367
8.80%
18567
8.30%
Total expenses
97621
23.20%
72852
22.60%
48095
21.50%
Income before taxes
69849
16.60%
46418
14.40%
32437
14.50%
Income taxes
12992
3.09%
9516
2.95%
6585
2.94%
Net Income
56857
13.51%
36902
11.45%
25852
11.56%
Percentage of each figure is based on the figure of 2015’s figure [denominator]
ASSETS:
2017
2016
2015
Amount ($)
% of 2015
Amount ($)
% of 2015
Amount ($)
% of 2015
Current Assets
51495
95.61%
40289
74.81%
53857
100.00%
Long Term Investments
0
0.00%
1100
26.76%
4110
100.00%
Plant Assets, net
98637
157.03%
104395
166.19%
62815
100.00%
Total Assets
150132
124.30%
145784
120.70%
120782
100.00%
Liabilities & Equity:
Current Liabilities
21919
103.70%
21722
102.77%
21137
100.00%
Common Stock
67000
136.73%
67000
136.73%
49000
100.00%
Other paid in capital
8375
153.84%
8375
153.84%
5444
100.00%
Retained Earnings
52838
116.90%
48687
107.71%
45201
100.00%
Tota; Liabilities & Equity
150132
124.30%
145784
120.70%
120782
100.00%
Choose Numerator
/
Choose Denominator
=
Current Ratio
Current Assets
/
Current Liabilities
=
2017
$51495
/
$21919
=
2.35
2016
$40289
/
$21722
=
1.85
2015
$53857
/
$21137
=
2.55
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