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	$	555,000		$	340,000		$	278,000
Cost of goods sold		283,500			212,500			153,900
Gross profit		271,500			127,500			124,100
Selling expenses		102,900			46,920			50,800
Administrative expenses		50,668			29,920			22,800
Total expenses		153,568			76,840			73,600
Income before taxes		117,932			50,660			50,500
Income taxes		40,800			10,370			15,670
Net income	$	77,132		$	40,290		$	34,830

  

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	52,390		$	37,924		$	51,748
Long-term investments		0			500			3,950
Plant assets, net		100,000			96,000			60,000
Total assets	$	152,390		$	134,424		$	115,698
Liabilities and Equity
Current liabilities	$	22,800		$	19,960		$	20,300
Common stock		72,000			72,000			60,000
Other paid-in capital		9,000			9,000			6,000
Retained earnings		48,590			33,464			29,398
Total liabilities and equity	$	152,390		$	134,424		$	115,698

3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year.

Answer 1

KORBIN COMPANY Balance sheet data in trend percents December 31, 2017, 2016 and 2015
	2017		2016		2015
Assets:
Current assets	$52,390	101.24%	$37,924	73.29%	$51,748	100%
Long term investments	0	0	500	12.66%	3,950	100%
Plant assets, Net	100,000	166.67%	96,000	160%	60,000	100%
Total assets	152,390	131.71%	134,424	116.19%	115,698	100%
Liabilities and Equity:
Current liabilities	22,800	112.32%	19,960	98.33%	20,300	100%
Common stock	72,000	120%	72,000	120%	60,000	100%,
Other paid in capital	9,000	150%	9,000	150%	6,000	100%
Retained earnings	48,590	165.28%	33,464	113.83%	29,398	100%
Total liabilities and equity	$152,390	131.71%	$134,424	116.19%	$115,698	100%