Question

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, 2019, 2018, and 2017 2019 2018 2017 Sales $ 479,843 $ 367,599 $ 255, 100 Cost of goods sold 288,865 231,587 163,264 Gross profit 190,978 136,012 91,836 Selling expenses 68,138 50,729 33,673 Administrative expenses 43,186 32,349 21,173 Total expenses 111,324 83,078 54,846 Income before taxes 79,654 52,934 36,990 Income tax expense 14,816 10,851 7,509 Net income $ 64,838 $ 42,083 $ 29,481 2018 2017 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 Assets Current assets $ 61,667 Long-term investments Plant assets, net 118,119 Total assets $ 179,786 Liabilities and Equity Current liabilities $ 26,249 Common stock 64,000 Other paid-in capital 8,000 Retained earnings 81,537 Total liabilities and equity $ 179,786 $ 41,274 $ 55,173 5004 ,290 107,573 64,271 $ 149,347 $123,734 $ 22,253 64,000 8,000 55,094 $ 149,347 $ 21,653 46,000 5,111 50,970 $123,734

Answer 1

1)	Current ratio
	Choose Numerator		/	Choose denominator		=	Current
							ratio
	Current assets		/	Current liabilities		=	Current ratio
2019	61,667		/	26,249		=	2.3	to 1
2018	41,274		/	22,253		=	1.9	to1
2017	55,173		/	21,653		=	2.5	to 1
2)				2017		2016		2015
	Sales			100%		100%		100%
	Cost of good sold			60.20%		63.00%		64.00%
	Gross profit			39.80%		37.00%		36.00%
	Selling expenses			14.20%		13.80%		13.20%
	Administrative expenses			9.00%		8.80%		8.30%
	total expenses			23.20%		22.60%		21.50%
	income before taxes			16.60%		14.40%		14.50%
	income taxes			3.09%		2.95%		2.94%
	Net income			13.51%		11.45%		11.56%
3)				2017		2016		2015
	Assets
	Current assets			111.77%		74.81%		100.00%
	Long -term investments					11.66%		100.00%
	Plant assets,net			183.78%		167.37%		100.00%
	total assets			145.30%		120.70%		100.00%
	Liabilities and Equity
	Current liabilities			121.23%		102.77%		100.00%
	Common stock			139.13%		139.13%		100.00%
	other paid in capital			156.53%		156.53%		100.00%
	Retained earnings			159.97%		108.09%		100.00%
	Total liabilities and Equity			145.30%		120.70%		100.00%