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Ratios, common-size statements, and trend percents

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.

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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 ...

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.

$2.19