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Problem 13-1A: Ratios, common-size statements, and trend percents

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Problem 13-1A: Ratios, common-size statements, and trend percents;Selected comparative financial statements of Korbin Company follow;KORBIN Company;Comparative Income Statements;For Years Ended December 31, 2009, 2008, and 2007;2009 2008 2007;Sales $430,185 $329,557 $228,700;Cost of goods sold 258,971 207,291 146,368;Gross Profit $171,214 $122,266 $82,332;Selling expenses 61,086 45,479 30,188;Administrative expenses 38,717 29,001 18,982;Total expenses $99,803 $74,480 $49,170;Income before taxes $71,411 $47,786 $33,162;Income taxes 13,282 9,796 6,732;Net income $58,129 $37,990 $26,430;KORBIN Company;Comparative Balance Sheets;December 31, 2009, 2008, and 2007;2009 2008 2007;Assets;Current assets $45,403 $36,972 $47,969;Long-term investments 0 700 4,850;Plant assets, net 86,967 90,864 53,673;Total assets $132,370 $128,536 $106,492;Liabilities and Equity;Current liabilities $19,326 $19,152 $18,636;Common stock 67,000 67,000 49,000;Other paid-in capital 8,375 8,375 5,444;Retained earnings 37,669 34,009 33,412;Total liabilities and equity $132,370 $128,536 $106,492;Required;1. Compute each year's current ratio. (Round your answer to 1 decimal place.);2. Express the income statement data in common-size percents.;3. Express the balance sheet data in trend percents with 2007 as the base year.;Problem 13-1A: Ratios, common-size statements, and trend percents L.O. P1, P2, P3;Selected comparative financial statements of Korbin Company follow;KORBIN Company;Comparative Income Statements;For Years Ended December 31, 2009, 2008, and 2007;2009 2008 2007;Sales $ 430,185 $ 329,557 $ 228,700;Cost of goods sold 258,971 207,291 146,368;Gross Profit 171,214 122,266 82,332;Selling expenses 61,086 45,479 30,188;Administrative expenses 38,717 29,001 18,982;Total expenses 99,803 74,480 49,170;Income before taxes 71,411 47,786 33,162;Income taxes 13,282 9,796 6,732;Net income $ 58,129 $ 37,990 $ 26,430;KORBIN Company;Comparative Balance Sheets;December 31, 2009, 2008, and 2007;2009 2008 2007;Assets;Current assets $ 45,403 $ 36,972 $ 47,969;Long-term investments 0 700 4,850;Plant assets, net 86,967 90,864 53,673;Total assets $ 132,370 $ 128,536 $ 106,492;Liabilities and Equity;Current liabilities $ 19,326 $ 19,152 $ 18,636;Common stock 67,000 67,000 49,000;Other paid-in capital 8,375 8,375 5,444;Retained earnings 37,669 34,009 33,412;Total liabilities and equity $ 132,370 $ 128,536 $ 106,492;Required;1. Compute each year's current ratio. (Round your answer to 1 decimal place.);Current ratio December 31, 2009: to;Current ratio December 31, 2008: to;Current ratio December 31, 2007: to;2. Express the income statement data in common-size percents. (Round your answer to 2 decimal places.;Omit the "%" sign, which is provided for you.);KORBIN Company;Common-Size Comparative Income Statements;For Years Ended December 31, 2009, 2008, 2007;2009 2008 2007;Sales % % %;Cost of goods sold;Gross profit;Selling expenses;Administrative expenses;Total expenses;Income before taxes;Income taxes;Net income % %;3. Express the balance sheet data in trend percents with 2007 as the base year. (Round your answer to 2;decimal places. Omit the "%" sign, which is provided for you.);KORBIN Company;Balance Sheet Data in Trend Percents;December 31, 2009, 2008, 2007;2009 2008 2007;Assets;Current assets % % %;Long-term investments;Plant assets;Total assets;Liabilities and Equity;Current liabilities % % %;Common stock;Other contributed capital;Retained earnings;Total liabilities and equity

 

Paper#25419 | Written in 18-Jul-2015

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