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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
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[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, 2019, 2018, and 2017 | |||||||||
2019 | 2018 | 2017 | |||||||
Sales | $ | 554,707 | $ | 424,951 | $ | 294,900 | |||
Cost of goods sold | 333,934 | 267,719 | 188,736 | ||||||
Gross profit | 220,773 | 157,232 | 106,164 | ||||||
Selling expenses | 78,768 | 58,643 | 38,927 | ||||||
Administrative expenses | 49,924 | 37,396 | 24,477 | ||||||
Total expenses | 128,692 | 96,039 | 63,404 | ||||||
Income before taxes | 92,081 | 61,193 | 42,760 | ||||||
Income tax expense | 17,127 | 12,545 | 8,680 | ||||||
Net income | $ | 74,954 | $ | 48,648 | $ | 34,080 | |||
KORBIN COMPANY | |||||||||
Comparative Balance Sheets | |||||||||
December 31, 2019, 2018, and 2017 | |||||||||
2019 | 2018 | 2017 | |||||||
Assets | |||||||||
Current assets | $ | 54,663 | $ | 36,586 | $ | 48,907 | |||
Long-term investments | 0 | 400 | 3,480 | ||||||
Plant assets, net | 103,094 | 94,062 | 56,186 | ||||||
Total assets | $ | 157,757 | $ | 131,048 | $ | 108,573 | |||
Liabilities and Equity | |||||||||
Current liabilities | $ | 23,033 | $ | 19,526 | $ | 19,000 | |||
Common stock | 71,000 | 71,000 | 53,000 | ||||||
Other paid-in capital | 8,875 | 8,875 | 5,889 | ||||||
Retained earnings | 54,849 | 31,647 | 30,684 | ||||||
Total liabilities and equity | $ | 157,757 | $ | 131,048 | $ | 108,573 | |||
Required: 1. Complete the below table to calculate each year's current ratio.
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