Selected comparative financial statements of Korbin Company follow. KORBIN COMPANYComparative Income StatementsFor Years Ended December 31 202120202019Sales$ 541,916$ 415,152$ 288,100Cost of goods sold326,233260,300184,384Gross profit215,683154,852103,716Selling expenses76,95257,29138,029Administrative expenses48,77236,53323,912Total expenses125,72493,82461,941Income before taxes89,95961,02841,775Income tax expense16,73212,5118,480Net income$ 73,227$ 48,517$ 33,295 KORBIN COMPANYComparative Balance SheetsDecember 31 202120202019Assets Current assets$ 57,416$ 38,429$ 51,370Long-term investments08004,560Plant assets, net105,00695,69455,854Total assets$ 162,422$ 134,923$ 111,784Liabilities and Equity Current liabilities$ 23,714$ 20,104$ 19,562Common stock72,00072,00054,000Other paid-in capital9,0009,0006,000Retained earnings57,70833,81932,222Total liabilities and equity$ 162,422$ 134,923$ 111,784 2. 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, 2021, 2020, and 2019This table displays comparative income statements for three consecutive years: 2021, 2020, and 2019. The statements are expressed as percentages of sales, which provide a common-size analysis, allowing for easy comparison across the years.---**2021:**- **Sales:** 100.00%- **Cost of Goods Sold:** % (Data not provided)- **Gross Profit:** % (Data not provided)- **Selling Expenses:** % (Data not provided)- **Administrative Expenses:** % (Data not provided)- **Total Expenses:** % (Data not provided)- **Income Before Taxes:** % (Data not provided)- **Income Tax Expense:** % (Data not provided)- **Net Income:** % (Data not provided)**2020:**- **Sales:** 100.00%- **Cost of Goods Sold:** % (Data not provided)- **Gross Profit:** % (Data not provided)- **Selling Expenses:** % (Data not provided)- **Administrative Expenses:** % (Data not provided)- **Total Expenses:** % (Data not provided)- **Income Before Taxes:** % (Data not provided)- **Income Tax Expense:** % (Data not provided)- **Net Income:** % (Data not provided)**2019:**- **Sales:** 100.00%- **Cost of Goods Sold:** % (Data not provided)- **Gross Profit:** % (Data not provided)- **Selling Expenses:** % (Data not provided)- **Administrative Expenses:** % (Data not provided)- **Total Expenses:** % (Data not provided)- **Income Before Taxes:** % (Data not provided)- **Income Tax Expense:** % (Data not provided)- **Net Income:** % (Data not provided)---**Explanation:**The table is structured to illustrate each line item of the income statement as a percentage of sales for a clear, concise comparative analysis. Such a format is useful for assessing trends in cost control, expense management, and profitability across different years.

Introduction:- A common size income statement occurs when every line item on the income statement is shown as a percentage of sales. Income statement =Every line item on the income statement / sales x 100Explanations:- KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 % 2020 % 2019 % Sales 541916 100.00 415152 100.00 288100 100 Cost of goods sold 3,26,233 60.20 2,60,300 62.70 1,84,384 64.00 Gross profit 2,15,683 39.80 1,54,852 37.30 1,03,716 36.00 Selling expenses 76,952 14.20 57,291 13.80 38,029 38.20 Administrative expenses 48,772 9.00 36,533 8.80 23,912 8.30 Total expenses 1,25,724 23.20 93,824 22.60 61,941 21.50 Income before taxes 89,959 16.60 61,028 14.70 41,775 14.50 Income tax expense 16,732 3.08 12,511 3.01 8,480 2.94 Net income 73227 13.52 48517 11.69 33295 11.56

Answered: Complete the below table to calculate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
	2021	2020	2019
Sales	$ 541,916	$ 415,152	$ 288,100
Cost of goods sold	326,233	260,300	184,384
Gross profit	215,683	154,852	103,716
Selling expenses	76,952	57,291	38,029
Administrative expenses	48,772	36,533	23,912
Total expenses	125,724	93,824	61,941
Income before taxes	89,959	61,028	41,775
Income tax expense	16,732	12,511	8,480
Net income	$ 73,227	$ 48,517	$ 33,295

KORBIN COMPANY
Comparative Balance Sheets
December 31
	2021	2020	2019
Assets
Current assets	$ 57,416	$ 38,429	$ 51,370
Long-term investments	0	800	4,560
Plant assets, net	105,006	95,694	55,854
Total assets	$ 162,422	$ 134,923	$ 111,784
Liabilities and Equity
Current liabilities	$ 23,714	$ 20,104	$ 19,562
Common stock	72,000	72,000	54,000
Other paid-in capital	9,000	9,000	6,000
Retained earnings	57,708	33,819	32,222
Total liabilities and equity	$ 162,422	$ 134,923	$ 111,784

2. 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, 2021, 2020, and 2019

This table displays comparative income statements for three consecutive years: 2021, 2020, and 2019. The statements are expressed as percentages of sales, which provide a common-size analysis, allowing for easy comparison across the years.

---

**2021:**

- **Sales:** 100.00%
- **Cost of Goods Sold:** % (Data not provided)
- **Gross Profit:** % (Data not provided)
- **Selling Expenses:** % (Data not provided)
- **Administrative Expenses:** % (Data not provided)
- **Total Expenses:** % (Data not provided)
- **Income Before Taxes:** % (Data not provided)
- **Income Tax Expense:** % (Data not provided)
- **Net Income:** % (Data not provided)

**2020:**

- **Sales:** 100.00%
- **Cost of Goods Sold:** % (Data not provided)
- **Gross Profit:** % (Data not provided)
- **Selling Expenses:** % (Data not provided)
- **Administrative Expenses:** % (Data not provided)
- **Total Expenses:** % (Data not provided)
- **Income Before Taxes:** % (Data not provided)
- **Income Tax Expense:** % (Data not provided)
- **Net Income:** % (Data not provided)

**2019:**

- **Sales:** 100.00%
- **Cost of Goods Sold:** % (Data not provided)
- **Gross Profit:** % (Data not provided)
- **Selling Expenses:** % (Data not provided)
- **Administrative Expenses:** % (Data not provided)
- **Total Expenses:** % (Data not provided)
- **Income Before Taxes:** % (Data not provided)
- **Income Tax Expense:** % (Data not provided)
- **Net Income:** % (Data not provided)

---

**Explanation:**
The table is structured to illustrate each line item of the income statement as a percentage of sales for a clear, concise comparative analysis. Such a format is useful for assessing trends in cost control, expense management, and profitability across different years.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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