Selected comparative of Korbin Company follow.
Required
1. Compute each year’s current ratio. Round ratios to one decimal.
2. Express the income statement data in common-size percents. Round percents to two decimals.
3. Express the balance sheet data in trend percents with 2017 as base year. Round percents to two decimals.
4. Refer to the results from parts 1, 2, and 3.
(a) Did cost of goods sold make up a greater portion of sales for the most recent year?
(b) Did income as a percent of sales improve in the most recent year?
(c) Did plant assets grow over this period?
Required
Prepare a table, similar to the following, showing Plum’s
(1) Current ratio,
(2) Acid-test ratio,
(3) Working capital after each transaction. Round ratios to two decimals.
