accounting 2 homework

For MyBusinessTutor:

Selected comparative financial statements of Torbin Company follow.

                               TORBIN 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

                                  TORBIN 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 equty......................... $  152,390       $   134,424       $115,698

REQUIRED
1. compute each years current ratio. (round ratio amounts 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 2012 as the base year. (round percents to two decimals.)

Analysis Component

4. comment on any significant relations revealed by the ratios and percents computed.