Requlred Informetlon The following information applies to th

Requlred Informetlon [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, 2817, 2816, and 2815 2817 2816 2815 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income 468,557 358,953 249,18e 226, 858 132,895 49,536 159,424 89,676 32,881 28,675 53,556 36,128 7,332 $63,314 48,522 28,788 282,871 186,486 66,535 42,178 8,705 77,781 14,467 81,124 58,971 18,449 KORBIN COMPANY Comparative Balance Sheets December 31, 2817, 2816, and 2815 2817 2816 2815 Assets Current assetS Long-term investments Plant assets, net Total assets $51,129 48,883 53,474 3,69e 60,361 $ 146,884 141,853 117,525 58e 101,35e 94,955 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings 21,328 21,136 28,567 51,88e 5,667 40,291 $ 146,884 141,853 117,525 69,88e 8,625 47,131 69,88e 8,625 43,892 Total liabilities and equity

Solution

1)                      Current ratio Choose Numerator / Choose denominator = Current ratio Current assets / Current liabilities = Current ratio 2017 51,129 / 21,328 = 2.4 to 1 2016 40,003 / 21,136 = 1.9 to1 2015 53,474 / 20,567 = 2.6 to 1 2) 2017 2016 2015 Sales 100% 100% 100% Cost of good sold 60.20% 63.20% 64.00% Gross profit 39.80% 36.80% 36.00% Selling expenses 14.20% 13.80% 13.20% Administrative expenses 9.00% 8.80% 8.30% total expenses 23.20% 22.60% 21.50% income before taxes 16.60% 14.20% 14.50% income taxes 3.09% 2.91% 2.94% Net income 13.51% 11.29% 11.56% 3) 2017 2016 2015 Assets Current assets 95.61% 74.81% 100.00% Long -term investments 13.55% 100.00% Plant assets,net 157.31% 167.91% 100.00% total assets 124.30% 120.70% 100.00% Liabilities and Equity Current liabilities 103.70% 102.77% 100.00% Common stock 135.29% 135.29% 100.00% other paid in capital 152.20% 152.20% 100.00% Retained earnings 116.98% 106.95% 100.00% Total liabilities and Equity 124.30% 120.70% 100.00%