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. 2021 $ 498,465 2020 2019 $ 381,865 $ 265,000 Cost of goods sold 300,076 242,102 169,600 Gross profit 198,389 139,763 95,400 Selling expenses 70,782 52,697 34,980 Administrative expenses 44,862 33,604 21,995 Total expenses 115,644 86,301 56,975 Income before taxes 82,745 53,462 38,425 Income tax expense Net income 15,391 10,960 7,800 $ 67,354 $ 42,502 $ 30,625 KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets $ 172,568 $ 143,352 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings $ 25,195 70,000 8,750 68,623 2021 $ 61,003 0 111,565 2020 $ 40,830 800 101,722 $ 21,359 70,000 8,750 43,243 2019 $ 54,579 3,950 60,238 $ 118,767 $ 20,784 52,000 5,778 40,205 Total liabilities and equity $172,568 $ 143.352 $ 118,767