2019 $18,150 100 $18,050 7,500 $10,550 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 Gross sales $23,200 Sales returns and allowances 1,000 Net sales $22,200 Cost of merchandise (goods) sold 10,950 Gross profit $11, 250 Operating expenses: Depreciation $ 1,120 Selling and administrative 5,350 Research 970 Miscellaneous 780 Total operating expenses $ 8, 220 Income before interest and taxes $ 3,030 Interest expense 980 Income before taxes $ 2,050 Provision for taxes 820 Net income $ 1,230 $ 810 4,100 710 510 $ 6,130 $ 4,420 710 $ 3,710 1,484 $ 2,226 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $ 11,400 $ 8,400 15,900 11,900 7,900 13,400 23,400 9,400 $ 58,600 $ 43, 100 $ 13,800 $ 10,400 12,900 8,400 $ 26,700 $ 18,800 $ 85,300 $ 61,900 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 $ 12,400 $ 6,400 6,400 4,400 $ 18,800 $ 10,800 21,400 19,900 $ 40,200 $ 30,700 $ 20,500 $ 20,300 24,600 10,900 $ 45,100 $ 31,200 $ 85,300 $ 61,900 Calculate the acid test ratio. (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 Acid test ratio 1.27 1.34