Required information [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 Sales Cost of goods sold 2021 $ 555,000 283,500 2020 $ 340,000 2019 $ 278,000 212,500 153,900 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 tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 Assets Current assets $ 52,390 $ 37,924 Long-term investments Plant assets, net 100,000 Total assets $ 152,390 $ 134,424 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings $ 22,800 72,000 9,000 48,590 Total liabilities and equity $ 152,390 $ 134,424 500 96,000 $ 19,960 72,000 9,000 33,464 2019 $ 51,748 3,950 60,000 $ 115,698 $ 20,300 60,000 6,000 29,398 $ 115,698