Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Numerator: 1 Denominator: Current ratio W Current ratio 2021 to 1 2020 to 1 2019 1 = to 1 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 2021 2020 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 1 1 1
Required: 1. Complete the below table to calculate each year's current ratio. Current Ratio Numerator: 1 Denominator: Current ratio W Current ratio 2021 to 1 2020 to 1 2019 1 = to 1 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 2021 2020 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 1 1 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Required:
1. Complete the below table to calculate each year's current ratio.
Current Ratio
Numerator:
Denominator:
=
Current ratio
=
Current ratio
2021
1
to 1
2020
1
=
to 1
2019
1
=
to 1
2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers
decimal places.)
KORBIN COMPANY
Common-Size Comparative Income Statements
For Years Ended December 31, 2021, 2020, and 2019
2021
2020
2019
Sales
%
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
1
1
%

Transcribed Image Text:Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
Sales
$ 562,795
2019
$ 299,200
338,803
Cost of goods sold
Gross profit
191,488
223,992
107,712
Selling expenses
79,917
39,494
Administrative expenses
50,652
24,834
Total expenses
130,569
64,328
Income before taxes
93,423
43,384
Income tax expense
17,377
8,807
Net income
$ 76,046
$ 34,577
KORBIN COMPANY
Comparative Balance Sheets
December 31
2021
2020
Assets
Current assets
$ 38,127
$ 56,965
0
Long-term investments
700
97,740
Plant assets, net
Total assets
107,436
$164,401
$ 136,567
Liabilities and Equity
Current liabilities
$ 20,348
Common stock
68,000
$ 24,003
68,000
8,500
63,898
Other paid-in capital
8,500
Retained earnings
39,719
Total liabilities and equity
$164,401 $ 136,567
2020
$431,147
273,778
157,369
59,498
37,941
97,439
59,930
12,286
$ 47,644
2019
$ 50,967
4,550
57,629
$ 113,146
$ 19,801
50,000
5,556
37,789
$113,146
4
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