McGraW-Hll Connect [The following information applies to the questions displayed
ID: 2603261 • Letter: M
Question
McGraW-Hll Connect [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, 2015, 2014, and 2013 2015 2014 2013 243,700 $458,400 351172 220185 Sales Cost of goods sold 275,957 155,968 Gross profit Selling expenses Administrative expenses 82,443 65,093 41,256 130,987 48,462 30,903 87,732 32,168 20,227 Total expenses 06,349 79,365 52,395 Income before taxes Income taxes 51,622 10,583 5,337 7,173 76,094 14,153 Net income $ 61,941 $ 41,039 28,164 KORBIN COMPANYE Comparaive Balance Sheets December 31, 2015.2014, and 2013 2014 2013 Assets Current assets Plant assets, net Total assets $ 46,946 $ 36,729 49,099 3,030 55,780 $134,131$130,246 107909 1,100 92,417 87185 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings s 19,583$ 19.407 64,000 8,000 38,839 18,884 64,000 8,000 42,548 5,111 37,914 Total liabilities and equity $ 134,131 $ 130,246 $ 107909Explanation / Answer
1.
Current Ratio
Choose Numerator
/
Choose Denominator
=
Current Ratio
Current Assets
/
Current Liabilities
=
Current Ratio
2015
$ 46,946
/
$ 19,583
=
2.4
to 1
2014
$ 36,729
/
$ 19,407
=
1.9
to 1
2013
$ 49,099
/
$ 18,884
=
2.6
to 1
2.
KORBIN COMPANY
Common-Size Comparative Income Statements
For Year Ended December 31,2015, 2014, 2013
2015
2014
2013
Sales
100.00
%
100.00
%
100.00
%
Cost of goods Sold
60.20
62.70
64.00
Gross profit
39.80
37.30
36.00
Selling expenses
14.20
13.80
13.20
Administrative expenses
9.00
8.80
8.30
Total expenses
23.21
22.60
21.50
Income before taxes
16.60
14.70
14.50
Income taxes
3.09
3.01
2.94
Net Income
13.51
%
11.69
%
11.56
%
3.
KORBIN COMPANY
Balance Sheet Data in Trend Percentage
December 31,2015, 2014, 2013
2015
2014
2013
Assets
Current Assets
95.61
%
76.84
%
100.00
%
Long-term Investment
0.00
36.30
100.00
Plant assets, net
156.30
165.68
100.00
Total assets
124.30
%
120.70
%
100.00
Liability and Equity
Current Liability
103.70
%
102.77
%
100.00
%
Common Stock
139.13
139.13
100.00
Retained earnings
156.53
156.53
100.00
Other paid-in capital
112.22
102.44
100.00
Total liability and equity
124.30
%
120.70
%
100.00
%
Current Ratio
Choose Numerator
/
Choose Denominator
=
Current Ratio
Current Assets
/
Current Liabilities
=
Current Ratio
2015
$ 46,946
/
$ 19,583
=
2.4
to 1
2014
$ 36,729
/
$ 19,407
=
1.9
to 1
2013
$ 49,099
/
$ 18,884
=
2.6
to 1