Problem 17-2A 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 31, 2017, 2016, and 2015201720162015$ 396,891238,928157,96356,359$ 304,051191,248112,80341,95926,756$ 211,000135,04075,96027,852SalesCost of goods soldGross profitSelling expensesAdministrative expenses35,72092,07965,88412,25417,51345,36530,595Total expenses68,71544,0889,038Income before taxesIncome taxes6,211Net income$ 53,630$ 35,050$24,384KORBIΝ COMPΑNYComparative Balance SheetsDecember 31, 2017, 2016, and 2015201720162015Assets$ 49,213$38,5031,20095,481Current assets$51,470Long-term investments4,10090,003$ 139,21656,430$ 112,000Plant assets, netTotal assets$ 135,184Liabilities and Equity$ 20,32667,0008,37543,51520,14267,0008,37539,667Current liabilities$$19,60049,0005,444Common stockOther paid-in capitalRetained earnings37,956Total liabilities and equity$ 139,216$ 135,184$ 112,000 Problem 17-2A Part 22. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2decimal places.)KORBIN COMPANYCommon-Size Comparative Income StatementsFor Years Ended December 31, 2017, 2016, and 2015201720162015Sales100.00 %100.00 %100.00 %Cost of goods soldGross profitSelling expensesAdministrative expensesTotal expensesIncome before taxesIncome taxesNet income%

Common size income statements is very important analysis tool, in which each item presented on the…

Problem 17-2A Part 2 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, 2017, 2016, and 2015 2017 2016 2015 Sales 100.00 % 100.00 % 100.00 % Cost of goods sold Gross profit Selling expenses Administrative expenses Total exnenses

Problem 17-2A Part 2 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, 2017, 2016, and 2015 2017 2016 2015 Sales 100.00 % 100.00 % 100.00 % Cost of goods sold Gross profit Selling expenses Administrative expenses Total exnenses

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...

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Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?
Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: December31 2016 2015 2014 Total assets......................................... 4,800,000 4,400,000 4,000,000 Notes payable (8% interest)........................... 2,250,000 2,250,000 2,250,000 Common stock...................................... 250,000 250,000 250,000 Preferred 4% stock, 100 par (no change during year)........................... 500,000 500,000 500,000 Retained earnings................................... 1,574,000 1,222,000 750,000 The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common Stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1........... 3,704,000 3,264,000 Net income.................... 600,000 550,000 Total....................... 4,304,000 3,814,000 Dividends: On preferred stock.............. 10,000 10,000 On common stock............ 100,000 100,000 Total dividends............... 110,000 110,000 Retained earnings, December 31..... 4,194,000 3,704,000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales..................... 10,850,000 10,000,000 Cost of goods sold......... 6,000,000 5,450,000 Gross profit............... 4,850,000 4,550,00 Selling expenses.......... 2,170,000 2,000,000 Administrative expenses... 1,627,500 1.500,000 Total operating expenses .. 3,797,500 3,500,000 Income from operations ... 1,052,500 1,050,000 Other revenue............ 99,500 20,000 1,152,000 1,070,000 Other expense (interest)... 132,000 120,000 Income before income tax . 1,020,000 950,000 Income tax expense....... 420,000 400.000 Net income............... 600,000 550,000 Marshall Inc. Comparative Balance Sheet December 31,20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash.......................................................... 1,050,000 950,000 Marketable securities........................................... 301,000 420,000 Accounts receivable (net)....................................... 585,000 500,000 Inventories.................................................... 420,000 380,000 Prepaid expenses.............................................. 108,000 20,000 Total current assets.......................................... 2,464,000 2,270,000 Long-term investments............................................ 800.000 800,000 Property, plant, and equipment (net)............................... 5,760,000 5,184,000 Total assets....................................................... 9,024,000 8,254,000 Liabilities Current liabilities.................................................. 880,000 800,000 Long-term liabilities: Mortgage note payable, 6%.............. 200,000 0 Bonds payable, 4%............................................. 3,000,000 3,000,000 Total long-term liabilities.................................... 3,200,000 3,000,000 Total liabilities.................................................... 4,080,000 3,800,000 Stockholders' Equity Preferred 4% stock, 5 par......................................... 250,000 250,000 Common stock, 5 par............................................. 500,000 500,000 Retained earnings................................................. 4,194,000 3,704,000 Total stockholders' equity.......................................... 4,944.000 4,454,000 Total liabilities and stockholders' equity............................. 9,024.000 8,254,000 Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3 Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [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, 2019, 2018, and 2017 2019 2018 2017 Sales $ 459,716 $ 352,180 $ 244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income $ 62,119 $ 39,197 $ 28,244 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 58,718 $ 39,300…
Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [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 $ 555,000 $ 340,000 $ 278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 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 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 52,390 $ 37,924 $ 51,748 Long-term investments 0 500 3,950 Plant assets, net 100,000 96,000 60,000 Total assets $ 152,390 $ 134,424 $ 115,698 Liabilities…
xercise 12-80Asset Efficiency Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,990,740 $1,793,543 General and administrative expenses (1,259,896) (1,202,042) (1,080,843) Special and nonrecurring items 2,617 0 0 Operating income $701,556 $788,698 $712,700 Interest expense (63,685) (62,398) (63,927) Other income 7,308 10,080 11,529 Gain on sale of investments 0 9,117 0 Income before income taxes $645,179 $745,497 $660,302 Provision for income taxes (254,000) (290,000) (257,000) Net income $391,179 $455,497 $403,302 Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2019 Dec. 31, 2018 Current assets: Cash and equivalents…
Nineteen Measures of Solvency and Profitability The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016. Bettancort Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 2016 and 2015 2016 2015Retained earnings, January 1 $2,655,000 $2,400,000 Add net income for year 300,000 280,000 Total $2,955,000 $2,680,000 Deduct dividends: On preferred stock $15,000 $15,000 On common stock 10,000 10,000 Total $25,000 $25,000 Retained earnings, December 31 $2,930,000 $2,655,000 Bettancort Inc.Comparative Income StatementFor the Years Ended December 31, 2016 and 2015 2016 2015Sales (all on account) $1,212,000 $1,010,000 Sales returns and allowances 12,000 10,000 Sales $1,200,000 $1,000,000 Cost of goods sold 500,000 475,000 Gross profit $700,000 $525,000 Selling expenses $240,000 $200,000 Administrative expenses 180,000 150,000 Total operating expenses $420,000…
Nineteen Measures of Solvency and Profitability The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016. Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Retained earnings, January 1 $2,655,000 $2,400,000 Add net income for year 300,000 280,000 Total $2,955,000 $2,680,000 Deduct dividends: On preferred stock $15,000 $15,000 On common stock 10,000 10,000 Total $25,000 $25,000 Retained earnings, December 31 $2,930,000 $2,655,000 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales (all on account) $1,212,000 $1,010,000 Sales returns and allowances 12,000 10,000 Sales $1,200,000 $1,000,000 Cost of goods sold 500,000 475,000 Gross profit $700,000 $525,000 Selling expenses $240,000 $200,000 Administrative expenses 180,000 150,000 Total operating…
Randall Corporation reported the following revenue data:Year Net revenues (in millions)$$$$6,8007,0046,7327,2762016201720182019Use 2016 as the base year. The trend percentage in 2019 is closest toa. 93%.b. 104%.c. 107%.d. 112%