Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses, Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities 2021 $ 497,148 299,283 197,865 70,595 44,743 115,338 82,527 15,350 $ 67,177 Common stock Other paid-in capital Retained earnings Total liabilities and equity 2020 $380,856 2021 KORBIN COMPANY Comparative Balance Sheets December 31 86,073 52,939 10,853 $ 42,086 $ 62,947 0 241,844 139,012 52,558 33,515 115,120 $ 178,067 $25,998 72,000 9,000 71,069 $ 178,067 2020 2019 $264,300 169,152 95,148 34,888 21,937 56,825 38,323 7,780 $ 30,543 $42,130 800 104,989 $147,919 " $ 22,040 72,000 9,000 44,879 $147,919 2019 $ 56,318 3,240 62,993 $ 122,551 $21,446 54,000 6,000 41,105 $ 122,551
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses, Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities 2021 $ 497,148 299,283 197,865 70,595 44,743 115,338 82,527 15,350 $ 67,177 Common stock Other paid-in capital Retained earnings Total liabilities and equity 2020 $380,856 2021 KORBIN COMPANY Comparative Balance Sheets December 31 86,073 52,939 10,853 $ 42,086 $ 62,947 0 241,844 139,012 52,558 33,515 115,120 $ 178,067 $25,998 72,000 9,000 71,069 $ 178,067 2020 2019 $264,300 169,152 95,148 34,888 21,937 56,825 38,323 7,780 $ 30,543 $42,130 800 104,989 $147,919 " $ 22,040 72,000 9,000 44,879 $147,919 2019 $ 56,318 3,240 62,993 $ 122,551 $21,446 54,000 6,000 41,105 $ 122,551
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
23
Transcribed Image Text:(a) Did cost of goods sold make up a greater portion of sales for the most recent year compared to the prior year?
O Yes
O No
(b) Did income as a percent of sales improve in the most recent year compared to the prior year?
O Yes
O No
(c) Did plant assets grow over this period?
O Yes
O No
Transcribed Image Text:Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses,
Total expenses
Income before taxes
Income tax expense
Net income
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
2021
$ 497,148
299,283
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
197,865
70,595
44,743
115,338
82,527
15,350
$ 67,177
KORBIN COMPANY
Comparative Balance Sheets
December 31
2020
$ 380,856
241,844
139,012
52,558
33,515
86,073
52,939
10,853
$ 42,086
2021
$ 62,947
0
115,120
$ 178,067
2020
2019
$ 264,300
169,152
95,148
34,888
21,937
56,825
38,323
7,780
$30,543
$ 42,130
800
104,989
$147,919
&
2019
$ 56,318
3,240
62,993
$ 122,551
$25,998
$ 22,040
$ 21,446
72,000
54,000
72,000
9,000
9,000
6,000
71,069
44,879
41,105
$ 178,067 $ 147,919 $ 122,551
HEAN
Expert Solution
Step 1: Introduction:
Income statement is a financial statement that records all the income and expenses of the business and helps to determine the net income.
A balance sheet is the financial statement that records all the assets, liabilities and stockholders' equity of the business.
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