Selected comparative financial statements of Korbin Company follow.KORBIN COMPANYComparative Income StatementsFor Years Ended December 31, 2019, 2018, and 2017201920182017$ 292,600Sales$ 550,381331,329$ 421,637Cost of goods sold266,053155,58458,186187,264Gross profit219,052105,33638,623Selling expenses78,15449,534127,68891,36416,994Administrative expenses37,10424,286Total expenses95,29060,29412,36062,909Income before taxes42,427Income tax expense8,613Net income74,37047,93433,814KORBIN COMPANYComparative Balance SheetsDecember 31, 2019, 2018, and 2017201920182017AssetsCurrent assetsLong-term investmentsPlant assets, net2$61,979%2441,4832455,4536004,440111,633102.13559,592Total assets173,61224144,218$ 119,485Liabilities and EquityCurrent liabilities2$25,34721,488$64,000$20,910Common stock64,00046,000Other paid-in capitalRetained earnings8,0008,0005,11147,46476,26550,730Total liabilities and equity24173,612$ 144,218$ 119,4853. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round yourpercentage answers to 2 decimal places.)KORBIN COMPANYBalance Sheet Data in Trend PercentsDecember 31, 2019, 2018 and 2017201920182017AssetsCurrent assets%100.00 %Long-term investments100.00Plant assets, net100.00Total assets100.00 %Liabilities and EquityCurrent liabilities100.00 %Common stock100.00Other paid-in capital100.00Retained eamings100.00Total liabilities and equity100.00 %

Trend analysis is used to analyze the trend on the basis of the base year. The management can make…

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 $ 550,381 $ 421,637 $ 292,600 Cost of goods sold Gross profit Selling expenses Administrative expenses 331,329 266,053 187,264 219,052 105,336 155,584 58,186 78,154 38,623 24,286 49,534 127,688 91,364 37,104 Total expenses Income before taxes 95,290 62,909 60,294 12,360 42,427 Income tax expense 16,994 8,613 Net income 24 74,370 24 47,934 2$ 33,814 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 61,979 2$ $ 55,453 4,440 41,483 Long-term investments Plant assets, net 600 111,633 102,135 59,592 $ 19,485 Total assetsS $ 173,612 $ 144,218 Liabilitles and Equity Current liabilities Common stock Other paid-in capital Retained earnings 2$ 24 64,000 25,347 21,488 2$ 20,910 64,000 8,000 46,000 5,111 47,464 8,000 76,265 $ 173,612 50,730 Total liabilities and equity $ 144,218 $ 119,485 3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.)

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 $ 550,381 $ 421,637 $ 292,600 Cost of goods sold Gross profit Selling expenses Administrative expenses 331,329 266,053 187,264 219,052 105,336 155,584 58,186 78,154 38,623 24,286 49,534 127,688 91,364 37,104 Total expenses Income before taxes 95,290 62,909 60,294 12,360 42,427 Income tax expense 16,994 8,613 Net income 24 74,370 24 47,934 2$ 33,814 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 61,979 2$ $ 55,453 4,440 41,483 Long-term investments Plant assets, net 600 111,633 102,135 59,592 $ 19,485 Total assetsS $ 173,612 $ 144,218 Liabilitles and Equity Current liabilities Common stock Other paid-in capital Retained earnings 2$ 24 64,000 25,347 21,488 2$ 20,910 64,000 8,000 46,000 5,111 47,464 8,000 76,265 $ 173,612 50,730 Total liabilities and equity $ 144,218 $ 119,485 3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

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