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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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