Selected comparative financial statements of Korbin Company follow.

KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2009, 2008, and 2007 2009 2008 2007 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 KORBIN COMPANY Comparative Balance Sheets December 31, 2009, 2008, and 2007 2009 2008 2007 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 equity . . . . . . . . $152,390 $134,424 $115,698 Required 1 Compute each year’s current ratio.
2 Express the income statement data in common-size percents.
3 Express the balance sheet data in trend percents with 2007 as the base year.
Analysis Component 4 Comment on any significant relations revealed by the ratios and percents computed.AppendixLO1