FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 13, Problem 1.2AA
To determine
Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.
To prepare: The common-size percent.
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Perform a horizontal and vertical analysis. Use 1 decimal place for percentage result on vertical analysis.
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
-1
-1
-1
Gross profit
Selling expenses
-1
-1
-1
Administrative expenses
-1
-1
-1
Total expenses
Income before taxes
-1
-1
-1
Income tax expense
-1
-1
-1
Net income
%
%
%
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Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3
[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
Cost of goods sold
$ 402,346 $ 308,230
242,212
$ 213,900
194,493
136,896
Gross profit
160,134
113,737
77,004
Selling expenses
57,133
42,536
28,235
Administrative expenses
36,211
27,124
17,754
Total expenses
93,344
69,660
45,989
Income before taxes
Income tax expense
66,790
44,077
31,015
12,423
9,036
6,296
Net income
$ 54,367
$ 35,041
$ 24,719
KORBIN COMPANY
Comparative Balance Sheets
December 31
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Current liabilities
Liabilities and Equity
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
$ 180,932
2021
$ 63,959
116,973
0
2020
$ 42,808
800
106,691
$ 180,932
$ 150,299
$…
Chapter 13 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QS
Ch. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 20QSCh. 13 - Prob. 21QSCh. 13 - Prob. 22QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Exercise 13-6 Common-size percents P2
Simon...Ch. 13 - Prob. 7ECh. 13 - Exercise 13-8 Liquidity analysis and...Ch. 13 - Exercise 13-9 Risk and Capital structure analysis...Ch. 13 - Exercise 13-10 Efficiency and Profitability...Ch. 13 - Exercise 13-11 profitability analysis P3 Refer to...Ch. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Problem 13-4A Calculation of financial statement...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Problem 13-6BAIncome statement computations and...Ch. 13 - Prob. 13SPCh. 13 - Prob. 1.1AACh. 13 - Prob. 1.2AACh. 13 - Prob. 1.3AACh. 13 - Prob. 2.1AACh. 13 - Prob. 2.2AACh. 13 - Prob. 2.3AACh. 13 - Prob. 3.1AACh. 13 - Prob. 3.2AACh. 13 - Prob. 3.3AACh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - ENTREPRENEURIAL DECISION A1 P1 P2 P3 BTN 13-7...
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