[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 $ 555,000 2020 $ 340,000 2019 $ 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 tax expense Net income 40,800 10,370 15,670 $ 77,132 $ 40,290 $ 34,830 Assets Current assets Long-term investments Plant assets, net KORBIN COMPANY Comparative Balance Sheets December 31 2021 $ 52,390 0 100,000 Current liabilities Total assets Liabilities and Equity Common stock $ 152,390 $ 134,424 Other paid-in capital Retained earnings $ 22,800 72,000 9,000 48,590 2020 $ 37,924 500 96,000 $ 19,960 72,000 2019 $ 51,748 3,950 60,000 $ 115,698 $ 20,300 60,000 9,000 33,464 6,000 29,398 Total liabilities and equity $ 152,390 $ 134,424 $ 115,698