Selected comparative financial statements of Korbin Company follow. Sales Cost of goods sold Gross profit KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2020 $ 448,619 $ 343,679 2019 $ 238,500 270,069 217,205 152,640 178,550 126,474 85,860 63,704 47,428 31,482 40,376 30,244 19,796 104,080 77,672 51,278 74,470 48,802 34,582 13,851 10,004 7,020 $ 60,619 $ 38,798 $ 27,562 Assets Current assets Long-term investments Plant assets, net KORBIN COMPANY Comparative Balance Sheets December 31 2021 $ 61,234 0 117,290 Current liabilities Total assets Liabilities and Equity Common stock $ 178,524 Other paid-in capital Retained earnings $ 26,065 70,000 8,750 73,709 2020 $ 40,984 1,000 106,315 $ 148,299 $ 22,097 70,000 8,750 47,452 2019 $ 54,786 4,720 63,360 $ 122,866 $ 21,502 52,000 5,778 43,586 Total liabilities and equity $ 178,524 $ 148,299 $ 122,866 Required: 1. Complete the below table to calculate each year's current ratio. 2021 2020 2019 Current Ratio Numerator: 1 Denominator: = Current ratio II = Current ratio = to 1 = to 1 = to 1

Selected comparative financial statements of Korbin Company follow. Sales Cost of goods sold Gross profit KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income 2020 $ 448,619 $ 343,679 2019 $ 238,500 270,069 217,205 152,640 178,550 126,474 85,860 63,704 47,428 31,482 40,376 30,244 19,796 104,080 77,672 51,278 74,470 48,802 34,582 13,851 10,004 7,020 $ 60,619 $ 38,798 $ 27,562 Assets Current assets Long-term investments Plant assets, net KORBIN COMPANY Comparative Balance Sheets December 31 2021 $ 61,234 0 117,290 Current liabilities Total assets Liabilities and Equity Common stock $ 178,524 Other paid-in capital Retained earnings $ 26,065 70,000 8,750 73,709 2020 $ 40,984 1,000 106,315 $ 148,299 $ 22,097 70,000 8,750 47,452 2019 $ 54,786 4,720 63,360 $ 122,866 $ 21,502 52,000 5,778 43,586 Total liabilities and equity $ 178,524 $ 148,299 $ 122,866 Required: 1. Complete the below table to calculate each year's current ratio. 2021 2020 2019 Current Ratio Numerator: 1 Denominator: = Current ratio II = Current ratio = to 1 = to 1 = to 1

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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