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Problem 13-2A 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:

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
	2017			2016			2015
Sales	$	496,208		$	380,136		$	263,800
Cost of goods sold		298,717			237,965			168,832
Gross profit		197,491			142,171			94,968
Selling expenses		70,462			52,459			34,822
Administrative expenses		44,659			33,452			21,895
Total expenses		115,121			85,911			56,717
Income before taxes		82,370			56,260			38,251
Income taxes		15,321			11,533			7,765
Net income	$	67,049		$	44,727		$	30,486

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
	2017			2016			2015
Assets
Current assets	$	52,317		$	40,932		$	54,716
Long-term investments		0			900			4,290
Plant assets, net		100,212			106,279			63,704
Total assets	$	152,529		$	148,111		$	122,710
Liabilities and Equity
Current liabilities	$	22,269		$	22,069		$	21,474
Common stock		67,000			67,000			49,000
Other paid-in capital		8,375			8,375			5,444
Retained earnings		54,885			50,667			46,792
Total liabilities and equity	$	152,529		$	148,111		$	122,710

Problem 13-2A Part 1

Required: 1. Complete the below table to calculate each year's current ratio.

2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)

For each ratio listed, identify whether the change in ratio value from 2016 to 2017 is usually regarded as favorable or unfavorable.

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