Ratios, common-size statements, and trend percents
Not what you're looking for?
Please see attached file
Problem 13-1A: Ratios, common-size statements, and trend percents
Selected comparative financial statements of Korbin Company follow:
KORBIN Company
Comparative Income Statements
For Years Ended December 31, 2009, 2008, and 2007
2009 2008 2007
Sales $430,185 $329,557 $228,700
Cost of goods sold 258,971 207,291 146,368
Gross Profit $171,214 $122,266 $82,332
Selling expenses 61,086 45,479 30,188
Administrative expenses 38,717 29,001 18,982
Total expenses $99,803 $74,480 $49,170
Income before taxes $71,411 $47,786 $33,162
Income taxes 13,282 9,796 6,732
Net income $58,129 $37,990 $26,430
KORBIN Company
Comparative Balance Sheets
December 31, 2009, 2008, and 2007
2009 2008 2007
Assets
Current assets $45,403 $36,972 $47,969
Long-term investments 0 700 4,850
Plant assets, net 86,967 90,864 53,673
Total assets $132,370 $128,536 $106,492
Liabilities and Equity
Current liabilities $19,326 $19,152 $18,636
Common stock 67,000 67,000 49,000
Other paid-in capital 8,375 8,375 5,444
Retained earnings 37,669 34,009 33,412
Total liabilities and equity $132,370 $128,536 $106,492
Required:
1. Compute each year's current ratio. (Round your answer to 1 decimal place.)
2. Express the income statement data in common-size percents.
3. Express the balance sheet data in trend percents with 2007 as the base year.
Purchase this Solution
Solution Summary
Calculates current ratio, expresses the income statement data in common-size percents and the balance sheet data in trend percents with 2007 as the base year.
Solution Preview
Please see attached file
Problem 13-1A: Ratios, common-size statements, and trend percents
Selected comparative financial statements of Korbin Company follow:
KORBIN Company
Comparative Income Statements
For Years Ended December 31, 2009, 2008, and 2007
2009 2008 2007
Sales $430,185 $329,557 $228,700
Cost of goods sold 258,971 207,291 146,368
Gross Profit $171,214 $122,266 $82,332
Selling expenses 61,086 45,479 30,188
Administrative expenses 38,717 29,001 18,982
Total expenses $99,803 $74,480 $49,170
Income before taxes $71,411 $47,786 $33,162
Income taxes 13,282 9,796 6,732
Net income $58,129 $37,990 $26,430
KORBIN Company
Comparative Balance Sheets
December 31, 2009, 2008, and 2007
2009 2008 2007
Assets
Current assets ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Operations Management
This quiz tests a student's knowledge about Operations Management
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Introduction to Finance
This quiz test introductory finance topics.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.