Question

2 IThe following information applies to the questions displayed below Selected comparative financial statements of Korbin Company follow KORBIN COMPANY Comparative Income Statements Part 1 of 3 For Years Ended December 31, 2017, 2016, and 2815 2016 $404,603 $309,959 $215,190 243,571 195,274 137,664 2017 2815 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income taxes Net income 161,032 114,685 77,436 57,454 42,774 28,393 36,414 27,276 17,853 93,868 ,546,246 67,164 44,63531,190 12,4939,1586,332 54,671 35,485 24,858 KORBIN COMPANY Comparative Balance Sheets December 31, 2017, 2816, and 2015 2015 Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity s 50,897 39,821 s 53,231 0 1,00 3,560 95,993 101,81561,383 $146,890 $142,636 $118,174 s 21,446 21,253 $20,680 70,000 70,000 52,900 8,750 8,750 5,778 46,69442,633 39,716 146,890 $142,636 $118,174 1. Complete the below table to calculate each year's current ratio Current ratio 0 to 1 0 to 1 0 to 1 2016 2015

Answer 1

1. Current ratio

	Choose Numerator:	/	Choose Denominator:	=	Current ratio
	Current assets	/	Current liabilities	=	Current ratio
2017	$50,897	/	$21,446	=	2.4 to 1
2016	$39,821	/	$21,253	=	1.9 to 1
2015	$53,231	/	$20,680	=	2.6 to 1