Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3Skip to question [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANYComparative Income StatementsFor Years Ended December 31, 2019, 2018, and 2017 201920182017Sales$459,716 $352,180 $244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income$62,119 $39,197 $28,244 KORBIN COMPANYComparative Balance SheetsDecember 31, 2019, 2018, and 2017 201920182017Assets Current assets$58,718 $39,300 $52,535 Long-term investments 0 500 4,280 Plant assets, net 109,047 99,561 58,646 Total assets$167,765 $139,361 $115,461 Liabilities and Equity Current liabilities$24,494 $20,765 $20,206 Common stock 65,000 65,000 47,000 Other paid-in capital 8,125 8,125 5,222 Retained earnings 70,146 45,471 43,033 Total liabilities and equity$167,765 $139,361 $115,461 Problem 17-2A Part 22. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) **Instruction:**Complete the table below to calculate income statement data in common-size percents. Ensure you round your percentage answers to two decimal places.---**Table:****KORBIN COMPANY***Common-Size Comparative Income Statements**For Years Ended December 31, 2019, 2018, and 2017*| Item | 2019 (%) | 2018 (%) | 2017 (%) ||-----------------------------|----------|----------|----------|| Sales | | | || Cost of Goods Sold | | | || Gross Profit | | | || Selling Expenses | | | || Administrative Expenses | | | || Total Expenses | | | || Income Before Taxes | | | || Income Tax Expense | | | || Net Income | | | |---**Explanation:**This table is used for comparing income statement data in a common-size format across the years 2019, 2018, and 2017 for Korbin Company. Each financial item in the income statement will be expressed as a percentage of sales for that year.Note: The detailed financial values need to be inserted to compute these percentages. The common-size format allows easier comparison by eliminating size differences across years or companies. **Korbin Company: Comparative Financial Statements**### Comparative Income StatementsFor the Years Ended December 31, 2019, 2018, and 2017- **Sales** - 2019: $459,716 - 2018: $352,180 - 2017: $244,400- **Cost of Goods Sold** - 2019: $276,749 - 2018: $223,282 - 2017: $156,416- **Gross Profit** - 2019: $182,967 - 2018: $128,898 - 2017: $87,984- **Selling Expenses** - 2019: $65,280 - 2018: $48,601 - 2017: $32,261- **Administrative Expenses** - 2019: $41,374 - 2018: $30,992 - 2017: $20,285- **Total Expenses** - 2019: $106,654 - 2018: $79,593 - 2017: $52,546- **Income Before Taxes** - 2019: $76,313 - 2018: $49,305 - 2017: $35,438- **Income Tax Expense** - 2019: $14,194 - 2018: $10,108 - 2017: $7,194- **Net Income** - 2019: $62,119 - 2018: $39,197 - 2017: $28,244### Comparative Balance SheetsDecember 31, 2019, 2018, and 2017#### Assets- **Current Assets** - 2019: $58,718 - 2018: $39,300 - 2017: $52,535- **Long-term Investments** - 2019: $0 - 2018: $500 - 2017: $4,280- **Plant Assets, Net** - 2019: $109,047 -

Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 459,716 $ 352,180 $ 244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income $ 62,119 $ 39,197 $ 28,244 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 58,718 $ 39,300 $ 52,535 Long-term investments 0 500 4,280 Plant assets, net 109,047 99,561 58,646 Total assets $ 167,765 $ 139,361 $ 115,461 Liabilities and Equity Current liabilities $ 24,494 $ 20,765 $ 20,206 Common stock 65,000 65,000 47,000 Other paid-in capital 8,125 8,125 5,222 Retained earnings 70,146 45,471 43,033 Total liabilities and equity $ 167,765 $ 139,361 $ 115,461 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.)

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

Skip to question

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

Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and 2017
	2019	2018	2017
Sales	$	459,716		$	352,180	$	244,400
Cost of goods sold		276,749			223,282		156,416
Gross profit		182,967			128,898		87,984
Selling expenses		65,280			48,601		32,261
Administrative expenses		41,374			30,992		20,285
Total expenses		106,654			79,593		52,546
Income before taxes		76,313			49,305		35,438
Income tax expense		14,194			10,108		7,194
Net income	$	62,119		$	39,197	$	28,244

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
	2019	2018	2017
Assets
Current assets	$	58,718		$	39,300	$	52,535
Long-term investments		0			500		4,280
Plant assets, net		109,047			99,561		58,646
Total assets	$	167,765		$	139,361	$	115,461
Liabilities and Equity
Current liabilities	$	24,494		$	20,765	$	20,206
Common stock		65,000			65,000		47,000
Other paid-in capital		8,125			8,125		5,222
Retained earnings		70,146			45,471		43,033
Total liabilities and equity	$	167,765		$	139,361	$	115,461

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.)

**Instruction:**
Complete the table below to calculate income statement data in common-size percents. Ensure you round your percentage answers to two decimal places.

---

**Table:**

**KORBIN COMPANY**

*Common-Size Comparative Income Statements*

*For Years Ended December 31, 2019, 2018, and 2017*

| Item | 2019 (%) | 2018 (%) | 2017 (%) |
|-----------------------------|----------|----------|----------|
| Sales | | | |
| Cost of Goods Sold | | | |
| Gross Profit | | | |
| Selling Expenses | | | |
| Administrative Expenses | | | |
| Total Expenses | | | |
| Income Before Taxes | | | |
| Income Tax Expense | | | |
| Net Income | | | |

---

**Explanation:**
This table is used for comparing income statement data in a common-size format across the years 2019, 2018, and 2017 for Korbin Company. Each financial item in the income statement will be expressed as a percentage of sales for that year.

Note: The detailed financial values need to be inserted to compute these percentages. The common-size format allows easier comparison by eliminating size differences across years or companies.

**Korbin Company: Comparative Financial Statements**

### Comparative Income Statements
For the Years Ended December 31, 2019, 2018, and 2017

- **Sales**
- 2019: $459,716
- 2018: $352,180
- 2017: $244,400

- **Cost of Goods Sold**
- 2019: $276,749
- 2018: $223,282
- 2017: $156,416

- **Gross Profit**
- 2019: $182,967
- 2018: $128,898
- 2017: $87,984

- **Selling Expenses**
- 2019: $65,280
- 2018: $48,601
- 2017: $32,261

- **Administrative Expenses**
- 2019: $41,374
- 2018: $30,992
- 2017: $20,285

- **Total Expenses**
- 2019: $106,654
- 2018: $79,593
- 2017: $52,546

- **Income Before Taxes**
- 2019: $76,313
- 2018: $49,305
- 2017: $35,438

- **Income Tax Expense**
- 2019: $14,194
- 2018: $10,108
- 2017: $7,194

- **Net Income**
- 2019: $62,119
- 2018: $39,197
- 2017: $28,244

### Comparative Balance Sheets
December 31, 2019, 2018, and 2017

#### Assets

- **Current Assets**
- 2019: $58,718
- 2018: $39,300
- 2017: $52,535

- **Long-term Investments**
- 2019: $0
- 2018: $500
- 2017: $4,280

- **Plant Assets, Net**
- 2019: $109,047
-

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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Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3

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

Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
	2021	2020	2019
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	50,800
Administrative expenses	50,668	29,920	22,800
Total expenses	153,568	76,840	73,600
Income before taxes	117,932	50,660	50,500
Income tax expense	40,800	10,370	15,670
Net income	$ 77,132	$ 40,290	$ 34,830

KORBIN COMPANY
Comparative Balance Sheets
December 31
	2021	2020	2019
Assets
Current assets	$ 52,390	$ 37,924	$ 51,748
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 and Equity
Current liabilities	$ 22,800	$ 19,960	$ 20,300
Common stock	72,000	72,000	60,000
Other paid-in capital	9,000	9,000	6,000
Retained earnings	48,590	33,464	29,398
Total liabilities and equity	$ 152,390	$ 134,424	$ 115,698

Problem 13-2A (Static) Part 2

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

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