Required informationProblem 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 COMPANYComparative Income StatementsFor Years Ended December 31202120202019Sales$ 442,035$ 338,635212,324126, 311$ 235,000Cost of goods soldGross profitSelling expensesAdministrative expensesTotal expensesIncome before taxes266, 105150,400175,93062,76939,783102,55273,37813,648$ 59,73084,60031,02046,73229,80076,53249,77919,50550,52534,075Income tax expense10, 2056,917Net income$ 39,574$ 27,158KORBIN COMPANYComparative Balance SheetsDecember 31202120202019AssetsCurrent assets$ 55,578$ 37, 199$ 49,726Long-term investmentsPlant assets, net9004,57056,095104,820$ 160,39895,143Total assets$ 133, 242$ 110,391Liabilities and EquityCurrent liabilities$ 19,853$ 23,41868,0008,50060,480$ 19,318Common stockOther paid-in capitalRetained earnings68, 0008,50036,88950,0005,55635,517Total liabilities and equity$ 160,398$ 133, 242$ 110,391Problem 13-2A (Algo) Part 22. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers todecimal places.)KORBIN COMPANYCommon-Size Comparative Income StatementsFor Years Ended December 31, 2021, 2020, and 2019202120202019Sales%%%Cost of goods soldGross profitSelling expensesAdministrative expensesTotal expensesIncome before taxesIncome tax expenseNet income%%< Prev7.of 7Next>

2. A common size income statement is an income statement where each line item of the income…

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 Gross profit Selling expenses Administrative expenses Total expenses $ 442,035 266,105 175,930 62,769 $ 338,635 212,324 126, 311 46,732 29,800 76,532 $ 235,000 150,400 84,600 31,020 19,505 50,525 34,075 6,917 39,783 102,552 73,378 13,648 Income before taxes 49,779 Income tax expense 10, 205 Net income $ 59,730 $ 39,574 $ 27,158 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets %24 $ 55,578 $ 37, 199 $ 49,726 Long-term investments Plant assets, net 900 95,143 $ 133, 242 4,570 104,820 $ 160,398 56,095 $ 110,391 Total assets Liabilities and Equity Current liabilities $ 23,418 68,000 8,500 60,480 $ 160,398 $ 19,853 68,000 8, 500 36,889 $ 19,318 Common stock Other paid-in capital Retained earnings 50,000 5,556 35,517 Total liabilities and equity $ 133, 242 $ 110,391 Problem 13-2A (Algo) Part 2 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 2021 2020 2019 Sales % % Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income %

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.9P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...