Required information Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The...
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Required information Problem 17-2A (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 $ 393,317 $ 301,313 $ 209,100 Cost of goods sold 236,777 190,129 133,824 Gross profit 156,540 111,184 75,276 Selling expenses 55,851 41,581 27,601 Administrative expenses 35,399 26,516 17,355 Total expenses 91,250 68,097 44,956 Income before taxes 65,290 43,087 30,320 Income tax expense Net income 12,144 8,833 6,155 $ 53,146 $ 34,254 $ 24,165 KORBIN COMPANY Comparative Balance Sheets December 31 2021 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 $ 169,051 $ 140,430 0 $ 58,576 110,475 2020 $ 39,205 900 100,325 $ 169,051 $ 140,430 $ 24,681 72,000 9,000 63,370 $ 20,924 72,000 9,000 38,506 2019 $ 52,408 3,380 60,558 $ 116,346 $ 20,361 54,000 6,000 35,985 $ 116,346 Problem 17-2A (Algo) Part 1 Required: 1. Complete the below table to calculate each year's current ratio. 2021 2020 2019 Numerator: Current Ratio Denominator: = Current ratio = Current ratio = 0 to 1 = = 0 0 to 1 to 1 2. Complete the below table to calculate income statement data in common-size percents. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2021 % 2020 2019 % % % % 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base year. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2021, 2020 and 2019 Assets 2021 2020 2019 Current assets % % 100.00 % Long-term investments 100.00 Plant assets, net 100.00 Total assets % % 100.00 % Liabilities and Equity Current liabilities % % 100.00% Common stock Other paid-in capital 100.00 100.00 Retained earnings 100.00 Total liabilities and equity % % 100.00 % Required information Problem 17-2A (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 $ 393,317 $ 301,313 $ 209,100 Cost of goods sold 236,777 190,129 133,824 Gross profit 156,540 111,184 75,276 Selling expenses 55,851 41,581 27,601 Administrative expenses 35,399 26,516 17,355 Total expenses 91,250 68,097 44,956 Income before taxes 65,290 43,087 30,320 Income tax expense Net income 12,144 8,833 6,155 $ 53,146 $ 34,254 $ 24,165 KORBIN COMPANY Comparative Balance Sheets December 31 2021 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 $ 169,051 $ 140,430 0 $ 58,576 110,475 2020 $ 39,205 900 100,325 $ 169,051 $ 140,430 $ 24,681 72,000 9,000 63,370 $ 20,924 72,000 9,000 38,506 2019 $ 52,408 3,380 60,558 $ 116,346 $ 20,361 54,000 6,000 35,985 $ 116,346 Problem 17-2A (Algo) Part 1 Required: 1. Complete the below table to calculate each year's current ratio. 2021 2020 2019 Numerator: Current Ratio Denominator: = Current ratio = Current ratio = 0 to 1 = = 0 0 to 1 to 1 2. Complete the below table to calculate income statement data in common-size percents. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2021 % 2020 2019 % % % % 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base year. Note: Round your percentage answers to 2 decimal places. KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2021, 2020 and 2019 Assets 2021 2020 2019 Current assets % % 100.00 % Long-term investments 100.00 Plant assets, net 100.00 Total assets % % 100.00 % Liabilities and Equity Current liabilities % % 100.00% Common stock Other paid-in capital 100.00 100.00 Retained earnings 100.00 Total liabilities and equity % % 100.00 %
Expert Answer:
Answer rating: 100% (QA)
1 Current Ratio Current Ratio Current Assets Current Liabilities 58576 Current Ratio 2021 24681 3920... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
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