2019 $16,050 100 $15,950 8,650 $ 7,300 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 Gross sales $20,400 Sales returns and allowances 900 Net sales $19,500 Cost of merchandise (goods) sold 11,650 Gross profit $ 7,850 Operating expenses: Depreciation $ 840 Selling and administrative 3,250 Research 690 Miscellaneous 500 Total operating expenses $ 5,280 Income before interest and taxes $ 2,570 Interest expense 700 Income before taxes $ 1,870 Provision for taxes 748 Net income $ 1,122 $ 670 2,700 570 370 $ 4,310 $ 2,990 570 $ 2,420 968 $ 1,452 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $ 12,700 $ 9,700 17,200 13,200 9, 200 14,700 24,700 10,700 $ 63,800 $ 48,300 $ 15,200 $ 11,900 14,200 9,700 $ 29,400 $ 21,600 $ 93,200 $ 69,900 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 $ 13,700 $ 7,700 7,700 5,700 $ 21,400 $ 13,400 22,700 21,200 $ 44,100 $ 34,600 $ 21,700 $ 21,700 27,400 13,600 $ 49,100 $ 35,300 $ 93,200 $ 69,900 Calculate the acid test ratio (Do NOT enter your answer as a percentage (ie, do not move the decimal two places to the right Enter it as a proportion rounded to the nearest hundredth.) 2020 2019 Acid fest ratio