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	$	459,340		$	351,892		$	244,200
Cost of goods sold		276,523			222,396			156,288
Gross profit		182,817			129,496			87,912
Selling expenses		65,226			48,561			32,234
Administrative expenses		41,341			30,966			20,269
Total expenses		106,567			79,527			52,503
Income before taxes		76,250			49,969			35,409
Income taxes		14,183			10,244			7,188
Net income	$	62,067		$	39,725		$	28,221

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	49,981		$	39,104		$	52,273
Long-term investments		0			400			3,890
Plant assets, net		92,822			99,163			58,723
Total assets	$	142,803		$	138,667		$	114,886
Liabilities and Equity
Current liabilities	$	20,849		$	20,661		$	20,105
Common stock		70,000			70,000			52,000
Other paid-in capital		8,750			8,750			5,778
Retained earnings		43,204			39,256			37,003
Total liabilities and equity	$	142,803		$	138,667		$	114,886

Required:
1. Complete the below table to calculate each year's current ratio.
2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)

Answer 1

1
Current Ratio
	Choose Numerator:	/	Choose Denominator:	=	Current ratio
	Current assets	/	Current liabilities	=	Current ratio
2017	$49,981	/	$20,849	=	2.4	to 1
2016	$39,104	/	$20,661	=	1.9	to 1
2015	$52,273	/	$20,105	=	2.6	to 1
2
KORBIN COMPANY
Common-Size Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
	2017	2016	2015
Sales	100.00	100.00	100.00
Cost of goods 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