Required information (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 Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes $440,530 $337,482 $234,200 213, 289 124, 193 46,573 29,698 76,271 47,922 9,824 $ 59,526 $ 38,098 $ 27,065 265, 199 175,331 62,555 39,648 102, 203 73,128 13,602 149,888 84,312 30,914 19,439 50,353 33,959 6,894 Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets $ 62,608 $ 41,904 $ 56,015 400 106, 290 $178,879 $148,594 $123,110 Current assets Long-term investments Plant assets, net 116, 271 3,440 63,655 Total assets Liabilities and Equity Current liabilities $ 26,116 $ 22,141 $ 21,544| 68,000 8,500 49,953 $178,879 $ 148,594 $123,110 68,000 8,500 76, 263 Common stock Other paid-in capital Retained earnings 50,000 5,556| 46,010 Total liabilities and equity 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![7:01
Done
O ezto.mheducation.com
AA C
Required information
[The following information applies to the questions displayed
below.]
2 of 4
Selected comparative financial statements of Korbin Company
follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and
2017
ipped
2019
2018
2017
Вook
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
265,199
175,331
62,555
39,648
102,203
73,128
$440,530 $337,482
213,289
124,193
46,573
29,698
$234, 200
149,888
84,312
30,914
19,439
50,353
Print
Total expenses
76,271
47,922
Income before taxes
33,959
6,894
13,602
9,824
$ 59,526 $ 38,098
Income tax expense
erences
Net income
$ 27,065
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
2019
2018
2017
Assets
$ 62,608 $ 41,904 $ 56,015
3,440
63,655
Current assets
Long-term investments
Plant assets, net
400
116,271
106,290
Total assets
$178,879 $148,594 $123,110
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
$ 26,116 $ 22,141
68,000
8,500
49,953
$178,879 $148,594 $123,110
$ 21,544
50,000
5,556|
46,010
68,000
8,500
76,263
Total liabilities and equity
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, 2019, 2018, and 2017
2019
2018
2017
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15aac52e-4e43-46d2-acb4-1c38ba3e2b8e%2F30c04443-4e8b-437d-bac4-c5e4c38c3b50%2F175wfqa_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
