Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Skip to question [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative
Required information
Skip to question
[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY | |||
Comparative Income Statements | |||
For Years Ended December 31 | |||
2021 | 2020 | 2019 | |
---|---|---|---|
Sales | $ 496,396 | $ 380,280 | $ 263,900 |
Cost of goods sold | 298,830 | 240,337 | 168,896 |
Gross profit | 197,566 | 139,943 | 95,004 |
Selling expenses | 70,488 | 52,479 | 34,835 |
Administrative expenses | 44,676 | 33,465 | 21,904 |
Total expenses | 115,164 | 85,944 | 56,739 |
Income before taxes | 82,402 | 53,999 | 38,265 |
Income tax expense | 15,327 | 11,070 | 7,768 |
Net income | $ 67,075 | $ 42,929 | $ 30,497 |
KORBIN COMPANY | |||
Comparative Balance Sheets | |||
December 31 | |||
2021 | 2020 | 2019 | |
---|---|---|---|
Assets | |||
Current assets | $ 62,462 | $ 41,806 | $ 55,885 |
Long-term investments | 0 | 1,000 | 3,140 |
Plant assets, net | 114,234 | 103,975 | 62,583 |
Total assets | $ 176,696 | $ 146,781 | $ 121,608 |
Liabilities and Equity | |||
Current liabilities | $ 25,798 | $ 21,870 | $ 21,281 |
Common stock | 70,000 | 70,000 | 52,000 |
Other paid-in capital | 8,750 | 8,750 | 5,778 |
Retained earnings | 72,148 | 46,161 | 42,549 |
Total liabilities and equity | $ 176,696 | $ 146,781 | $ 121,608 |
Required: 1. Complete the below table to calculate each year's current ratio.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started