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Required information Problem 17-2A Ratios, common-size statements, and trend per

ID: 341495 • Letter: R

Question

Required information

Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3

[The following information applies to the questions displayed below.]

Selected comparative financial statements of Korbin Company follow:


Problem 17-2A Part 2

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

Required information

Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3

[The following information applies to the questions displayed below.]

Selected comparative financial statements of Korbin Company follow:


Problem 17-2A Part 3

3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. (Round your percentage answers to 2 decimal places.)

KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 449,371 $ 344,255 $ 238,900 Cost of goods sold 270,521 217,225 152,896 Gross profit 178,850 127,030 86,004 Selling expenses 63,811 47,507 31,535 Administrative expenses 40,443 30,294 19,829 Total expenses 104,254 77,801 51,364 Income before taxes 74,596 49,229 34,640 Income taxes 13,875 10,092 7,032 Net income $ 60,721 $ 39,137 $ 27,608

Explanation / Answer

Answer

Requirement 2

KORBIN COMPANY

Comparative Income Statements

For Years Ended December 31 2017 2016 and 2015

2017

2016

2015

Amount

% of sales

Amount

% of sales

Amount

% of sales

Sales

$ 449371.00

100.00%

$344255.00

100.00%

$238900.00

100.00%

Cost of goods sold

$ 270521.00

60.20%

$217225.00

63.10%

$152896.00

64.00%

Gross profit

$ 178850.00

39.80%

$127030.00

36.90%

$ 86004.00

36.00%

Selling expenses

$    63811.00

14.20%

$ 47507.00

13.80%

$ 31535.00

13.20%

Administrative expenses

$    40443.00

9.00%

$ 30294.00

8.80%

$ 19829.00

8.30%

Total expenses

$ 104254.00

23.20%

$ 77801.00

22.60%

$ 51364.00

21.50%

Income before taxes

$    74596.00

16.60%

$ 49229.00

14.30%

$ 34640.00

14.50%

Income taxes

$    13875.00

3.09%

$ 10092.00

2.93%

$    7032.00

2.94%

Net income

$    60721.00

13.51%

$ 39137.00

11.37%

$ 27608.00

11.56%

KORBIN COMPANY

Comparative Balance Sheets

December 31, 2017, 2016, and 2015

2017

2016

2015

Assets

Amount

Change as per 2015 data

% change

Amount

Change as per 2015 data

% change

Base data

Base %

Current assets

$   45,817.00

$   (2,101.00)

-4.38%

$   35,846.00

$     (12,072.00)

-25.19%

$   47,918.00

100.00%

Long-term investments

$              -  

$   (3,610.00)

-100.00%

$     1,100.00

$       1,100.00

2.30%

$     3,610.00

100.00%

Plant assets, net

$   86,412.00

$ 31,561.00

57.54%

$   91,453.00

$      91,453.00

190.85%

$   54,851.00

100.00%

Total assets

$1,32,229.00

$ 25,850.00

24.30%

$1,28,399.00

$   1,28,399.00

267.96%

$1,06,379.00

100.00%

Liabilities and Equity

Current liabilities

$   19,305.00

$       689.00

3.70%

$   19,131.00

$      19,131.00

39.92%

$   18,616.00

100.00%

Common stock

$   66,000.00

$ 18,000.00

37.50%

$   66,000.00

$      66,000.00

137.74%

$   48,000.00

100.00%

Other paid-in capital

$     8,250.00

$   2,917.00

54.70%

$     8,250.00

$       8,250.00

17.22%

$     5,333.00

100.00%

Retained earnings

$   38,674.00

$    4,244.00

12.33%

$   35,018.00

$      35,018.00

73.08%

$   34,430.00

100.00%

Total liabilities and equity

$1,32,229.00

$ 25,850.00

24.30%

$1,28,399.00

$   1,28,399.00

267.96%

$1,06,379.00

100.00%

KORBIN COMPANY

Comparative Income Statements

For Years Ended December 31 2017 2016 and 2015

2017

2016

2015

Amount

% of sales

Amount

% of sales

Amount

% of sales

Sales

$ 449371.00

100.00%

$344255.00

100.00%

$238900.00

100.00%

Cost of goods sold

$ 270521.00

60.20%

$217225.00

63.10%

$152896.00

64.00%

Gross profit

$ 178850.00

39.80%

$127030.00

36.90%

$ 86004.00

36.00%

Selling expenses

$    63811.00

14.20%

$ 47507.00

13.80%

$ 31535.00

13.20%

Administrative expenses

$    40443.00

9.00%

$ 30294.00

8.80%

$ 19829.00

8.30%

Total expenses

$ 104254.00

23.20%

$ 77801.00

22.60%

$ 51364.00

21.50%

Income before taxes

$    74596.00

16.60%

$ 49229.00

14.30%

$ 34640.00

14.50%

Income taxes

$    13875.00

3.09%

$ 10092.00

2.93%

$    7032.00

2.94%

Net income

$    60721.00

13.51%

$ 39137.00

11.37%

$ 27608.00

11.56%

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