Compute each year’s current ratio, debt-to-equity ratio, profit margin, return on total assets. (Round ratio amount to one decimal.) Express the income statement data in common-size percents. (Round percents to two decimals.) Express the balance sheet data in trend percents with 2013 as the base year. (Round percents to two decimals.)
Selected comparative financial statements of Korbin Company follow.
Korbin Company
Comparative Income Statements
For Years Ended December 31, 2015, 2014 and 2013
|
|
2015 |
2014 |
2013 |
|
Sales |
$555,000 |
$340,000 |
$278,000 |
|
Cost of goods sold |
283,500 |
212,500 |
153,900 |
|
Gross profit |
271,500 |
127,500 |
124,100 |
|
Selling expenses |
102,900 |
46,920 |
50800 |
|
Admin. expenses |
50,668 |
29,920 |
22,800 |
|
Total expenses |
153,568 |
76,840 |
73,600 |
|
Income before taxes Income taxes
Net Income
|
117,932 40,800
$77,132 |
50,660 10,370
$40,290 |
50,500 15,670
$34,830 |
Korbin Company
Comparative Balance Sheets
December 31, 2015, 2014, and 2013
|
|
2015 |
2014 |
2013 |
|
Assets |
|
|
|
|
Current assets |
$52,390 |
$37,924 |
$1,748 |
|
Long-term Investments |
0 |
500 |
3,950 |
|
Plant assets, net |
100,000 |
96,000 |
60,000 |
|
Total assets |
$152,390 |
$134,424 |
$115,698 |
|
Liabilities & Equity |
|
|
|
|
Current Liabilities Common stock Other paid-in Capital Total Liabilities & Equity |
$22,800 72,000 9,000 48,590
$152,390 |
$19,960 72,000 9,000 33,464
$134,424 |
$20,300 60,000 6,000 29,398
$115, 698 |
Required:
-
Compute each year’s
current ratio , debt-to-equity ratio, profit margin, return on total assets. (Round ratio amount to one decimal.) -
Express the income statement data in common-size percents. (Round percents to two decimals.)
-
Express the
balance sheet data in trend percents with 2013 as the base year. (Round percents to two decimals.) -
Comment on any significant relations revealed by the ratios and percents computed.
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