Selected comparative financial statements of Korbin Company follow

Problem 17-1A Ratios, common-size statements, and trend percents LO P1, P2, P3

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Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2014, 2013, and 2012
			2014				2013				2012
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, 2014, 2013, and 2012
			2014				2013				2012
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
Explanation: Current ratio: December 31, 2014: $52,390 / $22,800 = 2.3 to 1 December 31, 2013: $37,924 / $19,960 = 1.9 to 1 December 31, 2012: $51,748 / $20,300 = 2.5 to 1