2019 $18,750 100 $18,650 7,100 $11,550 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 Gross sales $24,000 Sales returns and allowances 900 Net sales $23,100 Cost of merchandise (goods) sold 10,750 Gross profit $12,350 Operating expenses: Depreciation $ 1,200 Selling and administrative 5,950 Research 1,050 Miscellaneous 860 Total operating expenses $ 9,060 Income before interest and taxes $ 3,290 Interest expense 1,060 Income before taxes $ 2,230 Provision for taxes 892 Net income $ 1,338 $ 850 4,500 750 550 $ 6,650 $ 4,900 750 $ 4,150 1,660 $ 2,490 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 $ 11,000 $ 7,900 15,500 11,500 7,500 13,000 23,000 9,000 $ 57,000 $ 41,400 $ 13,500 $ 10,100 12,500 8,000 $ 26,000 $ 18,100 $ 83,000 $ 59,500 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 $ 12,000 $ 6,100 6,000 4,000 $ 18,000 $ 10,100 21,000 19,400 $ 39,000 $ 29,500 $ 20,300 $ 20,300 23,700 9,700 $ 44,000 $30,000 $ 83,000 $ 59,500 AY Calculate the return on equity (after tax 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 Return an equity