Selected comparative financial statements of Korbin Company follow. KORBIN COMPANYComparative Income StatementsFor Years Ended December 31 202120202019Sales$ 508,246$ 389,358$ 270,200Cost of goods sold305,964246,853172,928Gross profit202,282142,50597,272Selling expenses72,17153,73135,666Administrative expenses45,74234,26422,427Total expenses117,91387,99558,093Income before taxes84,36954,51039,179Income tax expense15,69311,1757,953Net income$ 68,676$ 43,335$ 31,226 KORBIN COMPANYComparative Balance SheetsDecember 31 202120202019Assets Current assets$ 60,248$ 40,324$ 53,904Long-term investments01,0003,350Plant assets, net113,627103,11362,412Total assets$ 173,875$ 144,437$ 119,666Liabilities and Equity Current liabilities$ 25,386$ 21,521$ 20,942Common stock66,00066,00048,000Other paid-in capital8,2508,2505,333Retained earnings74,23948,66645,391Total liabilities and equity$ 173,875$ 144,437$ 119,666 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) KORBIN COMPANYCommon-Size Comparative Income StatementsFor Years Ended December 31, 2021, 2020, and 201920212020SalesCost of goods soldGross profitSelling expensesAdministrative expensesTotal expensesIncome before taxesIncome tax expenseNet income%%%%2019%%

Lets understand the basics. Common size income statement is a statement which shows each line item as a percentage of either sales or revenue. This type of statement helps to analysis of data and calculating growth of the company. It also helps to compare company's financial with the competitor's financials. Common size income statement is also used in the verticle analysis. Percentage of line item = (Income or expense head amount/Sales or revenue amount) * 100 So here in this case, KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020 and 2019 2021 2020 2019 Sales 100.00 100.00 100.00 Cost of goods sold 60.20 63.40 64.00 Gross profit 39.80 36.60 36.00 Selling expenses 14.20 13.80 13.20 Administrative expenses 9.00 8.80 8.30 Total expenses 23.20 22.60 21.50 Income before taxes 16.60 14.00 14.50 Income tax expense 3.09 2.87 2.94 Net income 13.51 11.13 11.56 Formula for question is, 2021 2020 2019 Sales =508,246*100 /508,246 =389,358*100/389,358 =270,200*100/270,200 Cost of goods sold =305,964*100 /508,246 =246,853*100/389,358 =172,928*100/270,200 Gross profit =202,282*100 /508,246 =142,505*100/389,358 =97,272*100/270,200 Selling expenses =72,171*100 /508,246 =53,731*100/389,358 =35,666*100/270,200 Administrative expenses =45,742*100 /508,246 =34,264*100/389,358 ,=22,427*100/270,200 Total expenses =117,913*100 /508,246 =87,995*100/389,358 =58,093*100/270,200 Income before taxes =84,369 *100 /508,246 =54,510*100/389,358 =39,179*100/270,200 Income tax expense =15,693*100 /508,246 =11,175*100/389,358 =7,953*100/270,200 Net income =68,676*100 /508,246 =43,335*100/389,358 =31,226*100/270,200

Answered: elected comparative financial…

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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Question

Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
	2021	2020	2019
Sales	$ 508,246	$ 389,358	$ 270,200
Cost of goods sold	305,964	246,853	172,928
Gross profit	202,282	142,505	97,272
Selling expenses	72,171	53,731	35,666
Administrative expenses	45,742	34,264	22,427
Total expenses	117,913	87,995	58,093
Income before taxes	84,369	54,510	39,179
Income tax expense	15,693	11,175	7,953
Net income	$ 68,676	$ 43,335	$ 31,226

KORBIN COMPANY
Comparative Balance Sheets
December 31
	2021	2020	2019
Assets
Current assets	$ 60,248	$ 40,324	$ 53,904
Long-term investments	0	1,000	3,350
Plant assets, net	113,627	103,113	62,412
Total assets	$ 173,875	$ 144,437	$ 119,666
Liabilities and Equity
Current liabilities	$ 25,386	$ 21,521	$ 20,942
Common stock	66,000	66,000	48,000
Other paid-in capital	8,250	8,250	5,333
Retained earnings	74,239	48,666	45,391
Total liabilities and equity	$ 173,875	$ 144,437	$ 119,666

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
2021
2020
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
%
%
%
%
2019
%
%

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