please answer do not image format Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3[The following information applies to the questions displayed below]Selected comparative financial statements of Korbin Company follow.SalesCost of goods soldGross profitSelling expensesAdministrative expensesTotal expensesIncone before taxesIncome tax expenseNet incomeAssetsCurrent assetsKORBIN COMPANYComparative Income Statements:For Years Ended December 31.20212020$ 511,444 $ 391,808.307,889Long-term investmentsPlant assets, netTotal assetsLiabilities and Equity.Current liabilitiesCommon stockOther paid-in capitalRetained earningsAssetsCurrent assetsLong-term investmentsPlant assets, netTotal assetsLiabilities and EquityCurrent liabilitiesCommon stock203,55572,62546,030118,65584,90015,791$ 69,109KORBIN COMPANYComparative Balance SheetsOther paid-in capitalRetained earningsTotal liabilities and equityDecember 312021245,272146,53654,07034,47988,54957,98711,887$ 46, 100$ 23,70465,0008,12565,525Total liabilities and equity $ 162,354$ 56,2560106,098$ 162,35420210.002020$ 37,65270096,515$ 134,8673. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base year.Note: Round your percentage answers to 2 decimal places.KORBIN COMPANYBalance Sheet Data in Trend Percents.December 31, 2021, 2020 and 20192019$ 271,900174, 016%$ 20,095$ 19,55465,00047,0008,1255,22241,64739,961$134,867 $ 111,737%97,88435,89122,56858,45939,4258,003$ 31,422%2019$ 50,3323,53857,875$ 111,737202074.81 %120.70 %102.77 %%2019100.00 %100.00100.00100.00 %100.00 %100.00100.00100.00100.00 %

Trend percent is the percent relationship in which each item of different years bear to the same…

Assets Current assets. Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities. Common stock Other paid-in capital. Retained earnings Assets Current assets Long-term investments Plant assets, net Total assets December 31 Liabilities and Equity Current liabilities Common stock 2021 Other paid-in capital Retained earnings Total liabilities and equity $ 56,256 0 106,098 $ 162,354 $ 23,704 65,000 8,125 65,525 41,647 Total liabilities and equity $ 162,354 $ 134,867 $ 111,737 2020 $ 37,652 700 96,515 $134,867 $111,737 $ 20,095 65,000 8,125 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base year. Note: Round your percentage answers to 2 decimal places. 0.00 KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2021, 2020 and 2019 2021 % 2019 $ 50,332 3,530 57,875 % % $ 19,554 47,000 5,222 39,961 % 2020 74.81 % 120.70 % 102.77 % % 2019 100.00 % 100.00 100.00 100.00 % 100.00 % 100.00 100.00 100.00 100.00 %

Assets Current assets. Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities. Common stock Other paid-in capital. Retained earnings Assets Current assets Long-term investments Plant assets, net Total assets December 31 Liabilities and Equity Current liabilities Common stock 2021 Other paid-in capital Retained earnings Total liabilities and equity $ 56,256 0 106,098 $ 162,354 $ 23,704 65,000 8,125 65,525 41,647 Total liabilities and equity $ 162,354 $ 134,867 $ 111,737 2020 $ 37,652 700 96,515 $134,867 $111,737 $ 20,095 65,000 8,125 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base year. Note: Round your percentage answers to 2 decimal places. 0.00 KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2021, 2020 and 2019 2021 % 2019 $ 50,332 3,530 57,875 % % $ 19,554 47,000 5,222 39,961 % 2020 74.81 % 120.70 % 102.77 % % 2019 100.00 % 100.00 100.00 100.00 % 100.00 % 100.00 100.00 100.00 100.00 %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income statement: Prepare the following for Anson Industries, Inc.: A. Income statement, including comprehensive income. B. Income statement and a separate statement of comprehensive income.
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield