Complete the below table to calculate income statement data in common-size percents.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
Transcribed Image Text:## 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.
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