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	$	484,546		$	371,202		$	257,600
Cost of goods sold		291,697			233,486			164,864
Gross profit		192,849			137,716			92,736
Selling expenses		68,806			51,226			34,003
Administrative expenses		43,609			32,666			21,381
Total expenses		112,415			83,892			55,384
Income before taxes		80,434			53,824			37,352
Income tax expense		14,961			11,034			7,582
Net income	$	65,473		$	42,790		$	29,770

KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
	2019			2018			2017
Assets
Current assets	$	60,464		$	40,469		$	54,097
Long-term investments		0			900			4,100
Plant assets, net		114,035			103,587			61,899
Total assets	$	174,499		$	144,956		$	120,096
Liabilities and Equity
Current liabilities	$	25,477		$	21,598		$	21,017
Common stock		66,000			66,000			48,000
Other paid-in capital		8,250			8,250			5,333
Retained earnings		74,772			49,108			45,746
Total liabilities and equity	$	174,499		$	144,956		$	120,096

Required:
1. Complete the below table to calculate each year's current ratio.

Answer 1

Current ratio for 2019, 2018 & 2017
	2019	2018	2017
Total Current assets	60,464	40,469	54,097
(/) Current Liabilities	25,477	21,598	21,017
Current ratio = [Total Current assets / Total current liabilities]	2.37 Times	1.87 Times	2.57 Times