Question

Selected comparative financial statements of Korbin Company follow: KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales $ 442,787 $ 339,211 $ 235, 400 Cost of goods sold 266,558 215,060 150,656 Gross profit 176,229 124, 151 84,744 Selling expenses 62,876 46,811 31,073 Administrative expenses 39,851 29,851 19,538 Total expenses 102,727 76,662 50,611 Income before taxes 73,502 47,489 34,133 Income taxes 13,671 9,735 6,929 Net income $ 59,831 $ 37,754 $ 27,204 2015 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 Assets Current assets $ 47,436 $ 37,113 Long-term investments 0 500 Plant assets, net 88,095 93,992 Total assets $ 135,531 $ 131,605 Liabilities and Equity Current liabilities $ 19,788 $ 19,609 Common stock 71,000 71,000 Other paid-in capital 8,8758 ,875 Retained earnings 35,868 32,121 Total liabilities and equity $ 135,531 $ 131,605 $ 49,611 3,640 55,784 $ 109,035 $ 19,081 53,000 5,889 31,065 $ 109,035 2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)

Answer 1

KORBIN COMPANY
COMMON SIZE COMPARATIVE INCOME STATEMENT
FOR YEARS ENDED DECEMBER 31 2017, 2016, 2015
	2017	2016	2015
Sales	100%	100%	100%
Cost of Goods Sold	60%	63%	64%
Gross Profit	40%	37%	36%
Selling Expense	14%	14%	13%
Administrative Expense	9%	9%	8%
Total Expense	23%	23%	22%
Income before taxes	17%	14%	15%
Income TAXES	3%	3%	3%
Net Income	14%	11%	12%
	2017	2016	2015
Sales	442787	339211	235400
Cost of Goods Sold	266558	215060	150656
Gross Profit	176229	124151	84744
Selling Expense	62876	46811	31073
Administrative Expense	39851	29851	19538
Total Expense	102727	76662	50611
Income before taxes	73502	47489	34133
Income TAXES	13671	9735	6929
Net Income	59831	37754	27204
Tutorial Note: This common size income statement is prepared to make the income statement comparative not by dollars but by percentages.