Selected comparative financial statements of Korbin Company follow. KORBIN COMPANYComparative Income StatementsFor Years Ended December 31 202120202019Sales$ 508,246$ 389,358$ 270,200Cost of goods sold305,964246,853172,928Gross profit202,282142,50597,272Selling expenses72,17153,73135,666Administrative expenses45,74234,26422,427Total expenses117,91387,99558,093Income before taxes84,36954,51039,179Income tax expense15,69311,1757,953Net income$ 68,676$ 43,335$ 31,226 KORBIN COMPANYComparative Balance SheetsDecember 31 202120202019Assets Current assets$ 60,248$ 40,324$ 53,904Long-term investments01,0003,350Plant assets, net113,627103,11362,412Total assets$ 173,875$ 144,437$ 119,666Liabilities and Equity Current liabilities$ 25,386$ 21,521$ 20,942Common stock66,00066,00048,000Other paid-in capital8,2508,2505,333Retained earnings74,23948,66645,391Total liabilities and equity$ 173,875$ 144,437$ 119,666 Required:1. Complete the below table to calculate each year's current ratio. 202120202019Numerator:Current assets1111/Current RatioDenominator:Current liabilities===||==Current ratioCurrent ratio0 to 10 to 10 to 1

Current Ratio measures the ability of an organization to pay its bills in the near term. It is a…

Answered: Selected comparative financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
	2021	2020	2019
Sales	$ 508,246	$ 389,358	$ 270,200
Cost of goods sold	305,964	246,853	172,928
Gross profit	202,282	142,505	97,272
Selling expenses	72,171	53,731	35,666
Administrative expenses	45,742	34,264	22,427
Total expenses	117,913	87,995	58,093
Income before taxes	84,369	54,510	39,179
Income tax expense	15,693	11,175	7,953
Net income	$ 68,676	$ 43,335	$ 31,226

KORBIN COMPANY
Comparative Balance Sheets
December 31
	2021	2020	2019
Assets
Current assets	$ 60,248	$ 40,324	$ 53,904
Long-term investments	0	1,000	3,350
Plant assets, net	113,627	103,113	62,412
Total assets	$ 173,875	$ 144,437	$ 119,666
Liabilities and Equity
Current liabilities	$ 25,386	$ 21,521	$ 20,942
Common stock	66,000	66,000	48,000
Other paid-in capital	8,250	8,250	5,333
Retained earnings	74,239	48,666	45,391
Total liabilities and equity	$ 173,875	$ 144,437	$ 119,666

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

2021
2020
2019
Numerator:
Current assets
1
1
1
1
/
Current Ratio
Denominator:
Current liabilities
=
=
=
||
=
=
Current ratio
Current ratio
0 to 1
0 to 1
0 to 1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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