Question

! Required information [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, 2017, 2016, and 2015 2017 2016 2015 Sales $ 444,668 $ 340,652 $ 236,400 Cost of goods sold 267,690 214,951 151, 296 Gross profit 176, 978 125, 701 85,104 Selling expenses 63,143 47,010 31, 205 Administrative expenses 40,020 29,977 19,621 Total expenses 103,163 76,987 50, 826 Income before taxes 73,815 48,714 34, 278 Income taxes 13,730 9,986 6,958 Net income $ 60,085 $ 38,728 $ 27,320 2015 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 Assets Current assets $ 46, 228 $ 36,168 Long-term investments 0 500 Plant assets, net 87,187 92,883 Total assets $ 133, 415 $ 129,551 Liabilities and Equity Current liabilities $ 19,479 $ 19,303 Common stock 67,000 67,000 Other paid-in capital 8,375 8,375 $ 48,348 3,520 55,465 $ 107,333 $ 18,783 49,000 5,444

Answer 1

Common size comparative income statements

For tyears ended December 31,2017, 2016 and 2015

	2017	2016	2015
Sales	100%	100%	100%
Cost of goods sold	60.20%	63.10%	64%
Gross profit	39.80%	36.90%	36%
Selling expense	14.20%	13.80%	13.20%
Administrative expense	9.00%	8.80%	8.30%
Total expense	23.20%	22.60%	21.50%
Income before taxes	16.60%	14.30%	14.50%
Income taxes	3.09%	2.93%	2.94%
Net income	13.51%	11.37%	11.56%