Question

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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.

Answer 1

1)
Current Ratio
	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
	Current assets	/	Current liabilities	=	Current Ratio
2019	$                            54,663	/	$                           23,033	=	2.4	to 1
2018	$                            36,586	/	$                           19,526	=	1.9	to 1
2017	$                            48,907	/	$                           19,000	=	2.6	to 1