[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. 2021 2020 2019 KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets $ $ 555,000 340,000 278,000 283,500 212,500 153,900 271,500 127,500 124,100 102,900 46,920 50,800 50,668 29,920 22,800 153,568 76,840 73,600 117,932 50,660 50,500 40,800 10,370 15,670 $77,132 $ 40,290 $ 34,830 Assets Current assets Long-term investments Plant assets, net Total assets December 31 2021 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Numerator: Total liabilities and equity 1 1 T $ 52,390 0 100,000 152,390 Current Ratio $ 22,800 72,000 9,000 48,590 $ 152,390 134,424 Required: 1. Complete the below table to calculate each year's current ratio. 2020 Denominator: 37,924 500 96,000 $ 134,424 = = $ 19,960 72,000 9,000 33,464 2019 Current ratio 20,300 60,000 6,000 29,398 $ $ 115,698 =Current ratio to 1 to 1 to 1 2019 $ 51,748 3,950 60,000 115,698
[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. 2021 2020 2019 KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets $ $ 555,000 340,000 278,000 283,500 212,500 153,900 271,500 127,500 124,100 102,900 46,920 50,800 50,668 29,920 22,800 153,568 76,840 73,600 117,932 50,660 50,500 40,800 10,370 15,670 $77,132 $ 40,290 $ 34,830 Assets Current assets Long-term investments Plant assets, net Total assets December 31 2021 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Numerator: Total liabilities and equity 1 1 T $ 52,390 0 100,000 152,390 Current Ratio $ 22,800 72,000 9,000 48,590 $ 152,390 134,424 Required: 1. Complete the below table to calculate each year's current ratio. 2020 Denominator: 37,924 500 96,000 $ 134,424 = = $ 19,960 72,000 9,000 33,464 2019 Current ratio 20,300 60,000 6,000 29,398 $ $ 115,698 =Current ratio to 1 to 1 to 1 2019 $ 51,748 3,950 60,000 115,698
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
2021
2020
2019
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative
271,500 127,500 124, 100
102,900
46,920
50,800
50,668
29,920
22,800
expenses
Total expenses
Income before
153,568 76,840
73,600
taxes
117,932
50,660
Income tax expense 40,800 10,370
Net income
$
555,000 340,000
283,500
212,500
KORBIN COMPANY
Comparative Balance Sheets
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
50,500
15,670
$77,132 $ 40,290 $ 34,830
December 31
2021
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Numerator:
Total liabilities and
equity
1
1
1
$
52,390
0
100,000
$
152,390
$
22,800
72,000
Current Ratio
9,000
9,000
48,590 33,464
$
$
152,390 134,424
Required:
1. Complete the below table to calculate each year's current ratio.
Denominator:
2020
=
=
=
278,000
153,900
$
37,924
500
96,000
$
134,424
$
19,960
72,000
2019
Current
ratio
2019
$
51,748
3,950
60,000
$
115,698
20,300
60,000
6,000
29,398
$
115,698
Current ratio
to 1
to 1
to 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c1d62c8-f93c-4e9f-a68b-897f6e7c3c66%2Fc74a1b08-7d57-4609-8bea-64fb1374a64b%2F9povtsw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
2021
2020
2019
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative
271,500 127,500 124, 100
102,900
46,920
50,800
50,668
29,920
22,800
expenses
Total expenses
Income before
153,568 76,840
73,600
taxes
117,932
50,660
Income tax expense 40,800 10,370
Net income
$
555,000 340,000
283,500
212,500
KORBIN COMPANY
Comparative Balance Sheets
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
50,500
15,670
$77,132 $ 40,290 $ 34,830
December 31
2021
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Numerator:
Total liabilities and
equity
1
1
1
$
52,390
0
100,000
$
152,390
$
22,800
72,000
Current Ratio
9,000
9,000
48,590 33,464
$
$
152,390 134,424
Required:
1. Complete the below table to calculate each year's current ratio.
Denominator:
2020
=
=
=
278,000
153,900
$
37,924
500
96,000
$
134,424
$
19,960
72,000
2019
Current
ratio
2019
$
51,748
3,950
60,000
$
115,698
20,300
60,000
6,000
29,398
$
115,698
Current ratio
to 1
to 1
to 1
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