Selected comparative financial statements of Korbin Company follow.

Required

1. Compute each year’s current ratio. Round ratios to one decimal.

2. Express the income statement data in common-size percents. Round percents to two decimals.

3. Express the balance sheet data in trend percents with 2017 as base year. Round percents to two decimals.

4. Refer to the results from parts 1, 2, and 3.

(a) Did cost of goods sold make up a greater portion of sales for the most recent year?

(b) Did income as a percent of sales improve in the most recent year?

(c) Did plant assets grow over this period?

Required

Prepare a table, similar to the following, showing Plum’s

(1) Current ratio,

(2) Acid-test ratio,

(3) Working capital after each transaction. Round ratios to two decimals.

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KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2019 2018 2017 $555,000 $340,000 $278,000 Sales ... Cost of goods sold . 283,500 212,500 153,900 Gross profit.... Selling expenses... 271,500 127,500 124,100 102,900 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 $ 77,132 $ 40,290 $ 34,830 Net income . KORBIN COMPANY Comparative Balance Sheets At December 31 2019 2018 2017 Assets Current assets..... $ 52,390 $ 37,924 $ 51,748 Long-term investments. 500 3,950 100,000 96,000 $134,424 Plant assets, net.. 60,000 Total assets.. $152,390 $115,698 Liabilitles 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