2019 $15,750 100 $15,650 8,750 $ 6,900 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 Gross sales $20,000 Sales returns and allowances 800 Net sales $19,200 Cost of merchandise (goods) sold 11,750 Gross profit $ 7,450 Operating expenses: Depreciation $ 800 Selling and administrative 2,950 Research 650 Miscellaneous 460 Total operating expenses $ 4,860 Income before interest and taxes $ 2,590 Interest expense 660 Income before taxes $ 1,930 Provision for taxes 772 Net income $ 1,158 $ 650 2,500 550 350 $ 4,050 $ 2,850 550 $ 2,300 920 $ 1,380 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $ 12,500 $ 9,400 17,000 13,000 9,000 14,500 24,500 10,500 $ 63,000 $ 47,400 $ 15,000 $ 11,500 14,000 9,500 $ 29,000 $ 21,000 $ 92,000 $ 68,400 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land Total plant and equipment Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 13,500 $ 7,400 7,600 5,500 $ 21,100 $ 12,900 22,500 21,000 $ 43,600 $ 33,900 $ 21,500 $ 21,500 26,900 13,000 $ 48,400 $ 34,500 $ 92,000 $ 68,400 Calculate net income (after tax) to the net sales. (DO NOT enter your answer as a percentage (i.e., do not move the decimal two places to the right). Enter it as a proportion rounded to the nearest hundredth.) 2020 2019 Net income to net sales